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Market valuation of the analysts' recommendations: the Spanish stock market

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  • Susana Menendez-Requejo

Abstract

The aim of this paper is the analysis of the return and the trading volume of the analysts' recommendations, taking the column The Indiscrete from Cinco Dias, one of the most disseminated Spanish financial newspapers, as the database in the period 1997-1999. The results show that the market reacts before the publication of the recommendations, the cumulative return for the buying recommendations being 1.13% and -2% for sells. The trading volume, in number of shares, turnover euros and number of trades are greater than average before any type of recommendations and also after buy recommendations.

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  • Susana Menendez-Requejo, 2005. "Market valuation of the analysts' recommendations: the Spanish stock market," Applied Financial Economics, Taylor & Francis Journals, vol. 15(7), pages 509-518.
    • Handle: RePEc:taf:apfiec:v:15:y:2005:i:7:p:509-518
    DOI: 10.1080/09603100500056585
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    Cited by:

    1. Ahmed Nahar Al Hussaini, 2018. "Factors Affecting Debt to Equity Mixture in Kuwait, Bahrain and Oman," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 8(12), pages 1204-1218, December.

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