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Are analysts misleading investors? The case of goingconcern opinions

Author

Listed:
  • Ruben M.T. Peixinho

    (University of the Algarve and CEFAGEUE, Portugal)

  • Richard J. Taffler

    (University of Évora, Department of Economics, ICAAM/CEFAGE)

Abstract

This paper addresses the role of security analysts in the short-term market reaction to the publication of a going -concern (GC) modified audit report. We find that the 3-day mean abnormal return associated with the GC announcement is at least -6.9% for firms with analyst coverage in comparison with only -2.9% for non-covered firms (significant at

Suggested Citation

  • Ruben M.T. Peixinho & Richard J. Taffler, 2011. "Are analysts misleading investors? The case of goingconcern opinions," CEFAGE-UE Working Papers 2011_22, University of Evora, CEFAGE-UE (Portugal).
    • Handle: RePEc:cfe:wpcefa:2011_22
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    More about this item

    Keywords

    Short-term market reaction; Analyst coverage; Stock recommendations; Goingconcern opinions.;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

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