Contribution of sell-side equity analyst reports to client’s return and stock price efficiency: Indonesia stock market evidence
The present study investigates whether equity analyst reports benefit clients and improve stock price efficiency. Companyfocus reports issued and documented by six brokerage companies in Indonesia are collected and the analysis focuses on the revisions of stock recommendations (upgrade, downgrade, o...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2013
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| Online Access: | http://journalarticle.ukm.my/6955/ http://journalarticle.ukm.my/6955/1/3624-8085-1-PB.pdf |
| _version_ | 1848811325735567360 |
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| author | Ekaputra, Irwan Adi Susilawati, C. Erna Utama, Cynthia Afriani |
| author_facet | Ekaputra, Irwan Adi Susilawati, C. Erna Utama, Cynthia Afriani |
| author_sort | Ekaputra, Irwan Adi |
| building | UKM Institutional Repository |
| collection | Online Access |
| description | The present study investigates whether equity analyst reports benefit clients and improve stock price efficiency. Companyfocus reports issued and documented by six brokerage companies in Indonesia are collected and the analysis focuses on the revisions of stock recommendations (upgrade, downgrade, or reiteration); earnings forecasts; and price targets.First, the results show that analyst reports contribute to client’s returns. Upgrade revisions, downgrade revisions and price target revisions significantly influence clients’ abnormal returns. However, clients do not seem to take into account earnings forecast revisions. Second, the finding reveal that analyst reports contribute to stock price efficiency. Upgrade revisions and price target revisions improve price efficiency. However, earnings forecast revisions and downgrade revisions do not appear to improve price efficiency. Third, the results indicate that price efficiency improvement tends to reduce non-client (market) abnormal returns, which corroborates the second finding. |
| first_indexed | 2025-11-14T23:44:37Z |
| format | Article |
| id | oai:generic.eprints.org:6955 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T23:44:37Z |
| publishDate | 2013 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org:69552016-12-14T06:42:41Z http://journalarticle.ukm.my/6955/ Contribution of sell-side equity analyst reports to client’s return and stock price efficiency: Indonesia stock market evidence Ekaputra, Irwan Adi Susilawati, C. Erna Utama, Cynthia Afriani The present study investigates whether equity analyst reports benefit clients and improve stock price efficiency. Companyfocus reports issued and documented by six brokerage companies in Indonesia are collected and the analysis focuses on the revisions of stock recommendations (upgrade, downgrade, or reiteration); earnings forecasts; and price targets.First, the results show that analyst reports contribute to client’s returns. Upgrade revisions, downgrade revisions and price target revisions significantly influence clients’ abnormal returns. However, clients do not seem to take into account earnings forecast revisions. Second, the finding reveal that analyst reports contribute to stock price efficiency. Upgrade revisions and price target revisions improve price efficiency. However, earnings forecast revisions and downgrade revisions do not appear to improve price efficiency. Third, the results indicate that price efficiency improvement tends to reduce non-client (market) abnormal returns, which corroborates the second finding. Penerbit Universiti Kebangsaan Malaysia 2013 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/6955/1/3624-8085-1-PB.pdf Ekaputra, Irwan Adi and Susilawati, C. Erna and Utama, Cynthia Afriani (2013) Contribution of sell-side equity analyst reports to client’s return and stock price efficiency: Indonesia stock market evidence. Jurnal Pengurusan, 37 . pp. 25-32. ISSN 0127-2713 http://ejournal.ukm.my/pengurusan/index |
| spellingShingle | Ekaputra, Irwan Adi Susilawati, C. Erna Utama, Cynthia Afriani Contribution of sell-side equity analyst reports to client’s return and stock price efficiency: Indonesia stock market evidence |
| title | Contribution of sell-side equity analyst reports to client’s return and stock price
efficiency: Indonesia stock market evidence |
| title_full | Contribution of sell-side equity analyst reports to client’s return and stock price
efficiency: Indonesia stock market evidence |
| title_fullStr | Contribution of sell-side equity analyst reports to client’s return and stock price
efficiency: Indonesia stock market evidence |
| title_full_unstemmed | Contribution of sell-side equity analyst reports to client’s return and stock price
efficiency: Indonesia stock market evidence |
| title_short | Contribution of sell-side equity analyst reports to client’s return and stock price
efficiency: Indonesia stock market evidence |
| title_sort | contribution of sell-side equity analyst reports to client’s return and stock price
efficiency: indonesia stock market evidence |
| url | http://journalarticle.ukm.my/6955/ http://journalarticle.ukm.my/6955/ http://journalarticle.ukm.my/6955/1/3624-8085-1-PB.pdf |