Who to trust? Reactions to analyst recommendations of domestic versus foreign brokerage houses in a developing stock market
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Date
2021
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Elsevier Ltd
Abstract
Announcement day abnormal returns around analyst recommendations of upgrades average 35 and downgrades average -45 basis points in Borsa Istanbul. The nationality of the investment bank issuing the recommendation affects the magnitude of the stock market reaction. The absolute magnitude of abnormal returns upon upgrade and downgrade recommendations of foreign investment banks is larger than that of local investment banks. The differential reaction indicates that in a developing market country, Turkey, investors pay closer attention when the source of information is foreign rather than local.
Description
Keywords
Analyst recommendations, Brokerage houses, Information transmission, Market response, Event study
Turkish CoHE Thesis Center URL
Citation
4
WoS Q
Q1
Scopus Q
N/A