An assay of the accuracy of analysts’ reports

Analysts seek to ascertain the fair value of securities and avail this information to the investing public through reports. The constituents of these reports are, typically, a fair value price, which the analysts’ discern to be the actual price and, consequently, a projection of the direction (Stron...

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Main Authors: Manish Kumar Harish Nandwani, Anil Rai, Prakash Chandra Kamath
Other Authors: Lau Sie Ting
Format: Final Year Project
Language:English
Published: 2010
Subjects:
Online Access:http://hdl.handle.net/10356/35530
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Institution: Nanyang Technological University
Language: English
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spelling sg-ntu-dr.10356-355302023-05-19T06:24:04Z An assay of the accuracy of analysts’ reports Manish Kumar Harish Nandwani Anil Rai Prakash Chandra Kamath Lau Sie Ting Nanyang Business School DRNTU::Business::Finance::Investments Analysts seek to ascertain the fair value of securities and avail this information to the investing public through reports. The constituents of these reports are, typically, a fair value price, which the analysts’ discern to be the actual price and, consequently, a projection of the direction (Strong Buy, Buy, Hold, Sell, Strong Sell, Underweight, Overweight) in which the equity of a particular company is deemed to headed. These fair value estimates and projections are predicated on specific models utilised by the analysts. 124 analyst reports were collected in the course of this study. We empirically examined the accuracy of the fair value estimates and projections in these reports, and found that, at a 99% level of significance, the analysts were deemed to have been inaccurate, according to a previously (academically) established metric of forecast precision. We also determined, through second-order analyses, a measure of concomitance between the forecast error made by analysts and time periods in which the projections were made. This finding affirms prior time-series studies conducted by academics, all of whom are duly attributed in the paper BUSINESS 2010-04-20T06:34:46Z 2010-04-20T06:34:46Z 2010 2010 Final Year Project (FYP) http://hdl.handle.net/10356/35530 en Nanyang Technological University 46 p. application/pdf
institution Nanyang Technological University
building NTU Library
continent Asia
country Singapore
Singapore
content_provider NTU Library
collection DR-NTU
language English
topic DRNTU::Business::Finance::Investments
spellingShingle DRNTU::Business::Finance::Investments
Manish Kumar Harish Nandwani
Anil Rai
Prakash Chandra Kamath
An assay of the accuracy of analysts’ reports
description Analysts seek to ascertain the fair value of securities and avail this information to the investing public through reports. The constituents of these reports are, typically, a fair value price, which the analysts’ discern to be the actual price and, consequently, a projection of the direction (Strong Buy, Buy, Hold, Sell, Strong Sell, Underweight, Overweight) in which the equity of a particular company is deemed to headed. These fair value estimates and projections are predicated on specific models utilised by the analysts. 124 analyst reports were collected in the course of this study. We empirically examined the accuracy of the fair value estimates and projections in these reports, and found that, at a 99% level of significance, the analysts were deemed to have been inaccurate, according to a previously (academically) established metric of forecast precision. We also determined, through second-order analyses, a measure of concomitance between the forecast error made by analysts and time periods in which the projections were made. This finding affirms prior time-series studies conducted by academics, all of whom are duly attributed in the paper
author2 Lau Sie Ting
author_facet Lau Sie Ting
Manish Kumar Harish Nandwani
Anil Rai
Prakash Chandra Kamath
format Final Year Project
author Manish Kumar Harish Nandwani
Anil Rai
Prakash Chandra Kamath
author_sort Manish Kumar Harish Nandwani
title An assay of the accuracy of analysts’ reports
title_short An assay of the accuracy of analysts’ reports
title_full An assay of the accuracy of analysts’ reports
title_fullStr An assay of the accuracy of analysts’ reports
title_full_unstemmed An assay of the accuracy of analysts’ reports
title_sort assay of the accuracy of analysts’ reports
publishDate 2010
url http://hdl.handle.net/10356/35530
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