Analyst recommendations and abnormal returns : An event study on OMX Stockholm 30

The main purpose of this study is to contribute to the previous literature by evaluating positive changes in analysts' consensus recommendations of the stocks listed in OMXS30. We analyze if new positive changes in consensus recommendations correspond with lower abnormal returns. By conducting...

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Bibliographic Details
Main Authors: Salihu, Krenare, Flank Zetterström, Ludwig
Format: Others
Language:English
Published: Linnéuniversitetet, Institutionen för ekonomistyrning och logistik (ELO) 2021
Subjects:
Online Access:http://urn.kb.se/resolve?urn=urn:nbn:se:lnu:diva-104457
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spelling ndltd-UPSALLA1-oai-DiVA.org-lnu-1044572021-06-16T05:24:20ZAnalyst recommendations and abnormal returns : An event study on OMX Stockholm 30engSalihu, KrenareFlank Zetterström, LudwigLinnéuniversitetet, Institutionen för ekonomistyrning och logistik (ELO)Linnéuniversitetet, Institutionen för ekonomistyrning och logistik (ELO)2021Financeevent studyrecommendationsabnormal returnsbehavioral financeBusiness AdministrationFöretagsekonomiThe main purpose of this study is to contribute to the previous literature by evaluating positive changes in analysts' consensus recommendations of the stocks listed in OMXS30. We analyze if new positive changes in consensus recommendations correspond with lower abnormal returns. By conducting an event study and performing a series of different statistical tests, we find that positive changes in analyst consensus provide a short lived negative mean abnormal return in certain cases. We argue that this implies that investors might interpret positive changes as a sell signal. Furthermore, we find some pieces of evidence to suggest that it may actually be changes in the mean target price rather than changes in recommendations that causes the movements in abnormal returns.  Student thesisinfo:eu-repo/semantics/bachelorThesistexthttp://urn.kb.se/resolve?urn=urn:nbn:se:lnu:diva-104457application/pdfinfo:eu-repo/semantics/openAccess
collection NDLTD
language English
format Others
sources NDLTD
topic Finance
event study
recommendations
abnormal returns
behavioral finance
Business Administration
Företagsekonomi
spellingShingle Finance
event study
recommendations
abnormal returns
behavioral finance
Business Administration
Företagsekonomi
Salihu, Krenare
Flank Zetterström, Ludwig
Analyst recommendations and abnormal returns : An event study on OMX Stockholm 30
description The main purpose of this study is to contribute to the previous literature by evaluating positive changes in analysts' consensus recommendations of the stocks listed in OMXS30. We analyze if new positive changes in consensus recommendations correspond with lower abnormal returns. By conducting an event study and performing a series of different statistical tests, we find that positive changes in analyst consensus provide a short lived negative mean abnormal return in certain cases. We argue that this implies that investors might interpret positive changes as a sell signal. Furthermore, we find some pieces of evidence to suggest that it may actually be changes in the mean target price rather than changes in recommendations that causes the movements in abnormal returns. 
author Salihu, Krenare
Flank Zetterström, Ludwig
author_facet Salihu, Krenare
Flank Zetterström, Ludwig
author_sort Salihu, Krenare
title Analyst recommendations and abnormal returns : An event study on OMX Stockholm 30
title_short Analyst recommendations and abnormal returns : An event study on OMX Stockholm 30
title_full Analyst recommendations and abnormal returns : An event study on OMX Stockholm 30
title_fullStr Analyst recommendations and abnormal returns : An event study on OMX Stockholm 30
title_full_unstemmed Analyst recommendations and abnormal returns : An event study on OMX Stockholm 30
title_sort analyst recommendations and abnormal returns : an event study on omx stockholm 30
publisher Linnéuniversitetet, Institutionen för ekonomistyrning och logistik (ELO)
publishDate 2021
url http://urn.kb.se/resolve?urn=urn:nbn:se:lnu:diva-104457
work_keys_str_mv AT salihukrenare analystrecommendationsandabnormalreturnsaneventstudyonomxstockholm30
AT flankzetterstromludwig analystrecommendationsandabnormalreturnsaneventstudyonomxstockholm30
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