Market reactions to stock rating and target price changes in analyst reports: Evidence from Japan

Shohei Ishigami, Fumiko Takeda

Research output: Contribution to journalArticlepeer-review

5 Citations (Scopus)

Abstract

We aim to perform a comprehensive analysis of the effects of stock ratings and target prices published in the Japanese markets using a large number of analyst reports. Our study is the first to cover reports published by six domestic brokerage firms and ten foreign brokerage firms. In addition to the impact of rating changes on stock prices, we provide analyses on the combined effects of stock ratings and target prices. Furthermore, we find that market responses are affected by the information quality of securities companies issuing analyst reports and the number of reports issued on the same day.

Original languageEnglish
Pages (from-to)134-151
Number of pages18
JournalJournal of International Financial Markets, Institutions and Money
Volume52
DOIs
Publication statusPublished - 2018 Jan
Externally publishedYes

Keywords

  • Efficient market
  • Event study
  • Stock rating
  • Stock recommendation

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

Fingerprint

Dive into the research topics of 'Market reactions to stock rating and target price changes in analyst reports: Evidence from Japan'. Together they form a unique fingerprint.

Cite this