Age of Firms and the Value of Analyst Recommendation

Hassanudin Mohd Thas Thaker ()
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Hassanudin Mohd Thas Thaker: Department of Economics and Finance, Sunway University, Malaysia Author-2-Name: Azhar Mohamad Author-2-Workplace-Name: Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia (IIUM) Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:

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Abstract: Objective - This paper assesses the value of information disclosure in Malaysian analyst reports by examining three categories of firms, according to their age (young, medium and old). Methodology/Technique - The study uses a market-adjusted method to calculate the cumulative abnormal return and panel regression to test the research objective. The results from the unbalanced panel data reveals that not all information contained in the analyst reports is able to detect the movement in stock returns. Finding - Younger firms recorded two significant results (ROE and SPR) whereas among medium aged firms, TP, CFP, SPR, and MC all had an impact on CAR. The older firms showed that TP, EF, ROE and SPKLCI had an impact on CAR. Novelty � This qualitative inquiry reveals that Malaysian analyst reports tend to disclose information based on simple statistical analyses to formulate recommendations whilst ignoring other significant qualitative information.

Keywords: Age; Value; Analyst Report; Malaysia. (search for similar items in EconPapers)
JEL-codes: G30 G32 G39 (search for similar items in EconPapers)
Pages: 7
Date: 2019-06-19
New Economics Papers: this item is included in nep-cfn and nep-sea
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Published in Journal of Business and Economics Review, Volume 4, Issue 2

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