The Influence of Industrial Differences on the analysts’ Target Price and Recommendations

• Main Authors: Chi-Yang Chen, 陳啟洋
• Other Authors: 黃承祖
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/65pprw

博士 === 國立中央大學 === 企業管理學系 === 106 === There is informative content in analyst’ report. The purpose of this research discuss whether there is a positive relationship between the ratio of target price to market price and the recommendations, and also discuss if there are different thresholds of recommendations when the industry is different, and analysts’ reports are influential. The research sample is the listed companies in Taiwan from 2008 to 2017. The empirical result shows that there is a significantly positive relationship between the discounted premium rate and recommendation. In other words, the higher target price than market price, the more positive reports are issued. There is different recommendation level in different industry. The level of traditional industry is higher than electronic industry. The level of electronic industry is higher than financial industry. In other words, financial industry receives more positive recommendations than electronics industry, and electronics industry receives more positive recommendations than traditional industry. The results, rank from the highest to the lowest are as follows: production, electronics and finance. There is an overreaction in the market when there is cumulative abnormal return after target price and recommendation reports are issued in three days by analysts.