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Open Access
Article
Publication date: 17 March 2023

Cheol-Won Yang

The recommendation of the analyst report is not only limited to a small number of ratings, but also biased toward a buy opinion with the absence of sell opinion. As an alternative…

Abstract

The recommendation of the analyst report is not only limited to a small number of ratings, but also biased toward a buy opinion with the absence of sell opinion. As an alternative to this, this paper aims to extract analysts' textual opinions embedded in the report body through text analysis and examine the profitability of investment strategies. Analyst opinion about a firm is measured by calculating the frequency of positive and negative words in the report text through the Korean sentiment lexicon for finance (KOSELF). To verify the usefulness of textual opinions, the author constructs a calendar-time based portfolios by the analysts' textual opinion variable of each stock. When opinion level is used, investment strategy has no significant hedged portfolio return. However, hedged portfolio constructed by opinion change shows significant return of 0.117% per day (2.57% per month). In addition, the hedged return increases to 0.163% per day (3.59% per month) when the opening price is used instead of closing price. This study show that the analysts’ opinion extracted from text analysis contains more detailed spectrum than recommendation and investment strategies using them give significant returns.

Details

Journal of Derivatives and Quantitative Studies: 선물연구, vol. 31 no. 2
Type: Research Article
ISSN: 1229-988X

Keywords

Open Access
Article
Publication date: 31 March 2022

Kun Tracy Wang, Guqiang Luo and Li Yu

The purpose of this study is to examine whether and how analysts’ foreign ancestral origins would have an effect on analysts’ earning forecasts in particular and ultimately on…

Abstract

Purpose

The purpose of this study is to examine whether and how analysts’ foreign ancestral origins would have an effect on analysts’ earning forecasts in particular and ultimately on firms’ information environment in general.

Design/methodology/approach

By inferring analysts’ ancestral countries based on their surnames, this study empirically examines whether analysts’ ancestral countries affect their earnings forecast errors.

Findings

Using novel data on analysts’ foreign ancestral origins from more than 110 countries, this study finds that relative to analysts with common American surnames, analysts with common foreign surnames tend to have higher earnings forecast errors. The positive relation between analyst foreign surnames and earnings forecast errors is more likely to be observed for African-American analysts and analysts whose ancestry countries are geographically apart from the USA. In contrast, this study finds that when analysts’ foreign countries of ancestry are aligned with that of the CEOs, analysts exhibit lower earnings forecast errors relative to analysts with common American surnames. More importantly, the results show that firms followed by more analysts with foreign surnames tend to exhibit higher earnings forecast errors.

Originality/value

Taken together, findings of this study are consistent with the conjecture that geographical, social and ethnical proximity between managers and analysts affect firms’ information environment. Therefore, this study contributes to the determinants of analysts’ earnings forecast errors and adds to the literature on firms’ information environment.

Details

China Accounting and Finance Review, vol. 24 no. 1
Type: Research Article
ISSN: 1029-807X

Keywords

Content available
Book part
Publication date: 16 January 2023

Abstract

Details

The Emerald Handbook on Cryptoassets: Investment Opportunities and Challenges
Type: Book
ISBN: 978-1-80455-321-3

Open Access
Article
Publication date: 30 June 2021

Shreya Sharda

This study aims to evaluate the short-term impact of brokerage analysts’ recommendations on abnormal returns using a sample selected from the S&P BSE 100 in the Indian context…

2037

Abstract

Purpose

This study aims to evaluate the short-term impact of brokerage analysts’ recommendations on abnormal returns using a sample selected from the S&P BSE 100 in the Indian context. The efficient market hypothesis, specifically, its semi-strong form, is tested for “Buy” stock recommendations published in the electronic version of Business Standard. The crucial issue is, are there any abnormal returns that can be earned following a recommendation? If so, how quickly do prices incorporate the information value of these recommendations? It tests the impact of analyst recommendations on average abnormal returns (AARs) and standardized abnormal returns (SRs) to determine their statistical significance.

Design/methodology/approach

Using a sample of stock recommendations published in the e-version of Business Standard, the event study methodology is used to determine whether AARs and SRs are significantly different from zero for the duration of the event window by using several significance tests.

Findings

The findings indicate a marginal opportunity for profit in the short term, restricted to the event day. However, the effect does not persist, i.e. the market is efficient in its semi-strong form implying that investors cannot consistently earn abnormal returns by following analysts’ recommendations. Post the event date, the market reaction to analyst recommendations becomes positive, however, insignificant until the ninth day after the recommendation providing support to the underreaction hypothesis given by Shliefer (2000) and post-recommendation price drift documented by Womack (1996). The study contributes by using different statistical tests to determine the significance of returns.

Practical implications

There are important implications for traders, investors and portfolio managers. The speed with which market prices incorporate publicly available information is useful in formulating trading strategies. However, stock characteristics such as market capitalization, volatility and level of analyst coverage need to be incorporated while making investment decisions.

Originality/value

The study contributes by using different statistical tests to determine the significance of returns.

Details

Vilakshan - XIMB Journal of Management, vol. 19 no. 1
Type: Research Article
ISSN: 0973-1954

Keywords

Open Access
Article
Publication date: 6 February 2024

Italo Cesidio Fantozzi, Sebastiano Di Luozzo and Massimiliano Maria Schiraldi

The purpose of the study is to identify the soft skills and abilities that are crucial to success in the fields of operations management (OM) and supply chain management (SCM)…

Abstract

Purpose

The purpose of the study is to identify the soft skills and abilities that are crucial to success in the fields of operations management (OM) and supply chain management (SCM), using the O*NET database and the classification of a set of professional figures integrating values for task skills and abilities needed to operate successfully in these professions.

Design/methodology/approach

The study used the O*NET database to identify the soft skills and abilities required for success in OM and SCM industries. Correlation analysis was conducted to determine the tasks required for the job roles and their characteristics in terms of abilities and soft skills. ANOVA analysis was used to validate the findings. The study aims to help companies define specific assessments and tests for OM and SCM roles to measure individual attitudes and correlate them with the job position.

Findings

As a result of the work, a set of soft skills and abilities was defined that allow, through correlation analysis, to explain a large number of activities required to work in the operations and SCM (OSCM) environment.

Research limitations/implications

The work is inherently affected by the database used for the professional figures mapped and the scores that are attributed within O*NET to the analyzed elements.

Practical implications

The information resulting from this study can help companies develop specific assessments and tests for the roles of OM and SCM to measure individual attitudes and correlate them with the requirements of the job position. The study aims to address the need to identify soft skills in the human sphere and determine which of them have the most significant impact on the OM and SCM professions.

Originality/value

The originality of this study lies in its approach to identify the set of soft skills and abilities that determine success in the OM and SCM industries. The study used the O*NET database to correlate the tasks required for specific job roles with their corresponding soft skills and abilities. Furthermore, the study used ANOVA analysis to validate the findings in other sectors mapped by the same database. The identified soft skills and abilities can help companies develop specific assessments and tests for OM and SCM roles to measure individual attitudes and correlate them with the requirements of the job position. In addressing the necessity for enhanced clarity in the domain of human factor, this study contributes to identifying key success factors. Subsequent research can further investigate their practical application within companies to formulate targeted growth strategies and make appropriate resource selections for vacant positions.

Details

The TQM Journal, vol. 36 no. 9
Type: Research Article
ISSN: 1754-2731

Keywords

Open Access
Article
Publication date: 14 August 2017

Jassim Happa and Michael Goldsmith

Several attack models attempt to describe behaviours of attacks with the intent to understand and combat them better. However, all models are to some degree incomplete. They may…

1226

Abstract

Purpose

Several attack models attempt to describe behaviours of attacks with the intent to understand and combat them better. However, all models are to some degree incomplete. They may lack insight about minor variations about attacks that are observed in the real world (but are not described in the model). This may lead to similar attacks being classified as the same type of attack, or in some cases the same instance of attack. The appropriate solution would be to modify the model or replace it entirely. However, doing so may be undesirable as the model may work well for most cases or time and resource constraints may factor in as well. This paper aims to explore the potential value of adding information about attacks and attackers to existing models.

Design/methodology/approach

This paper investigates used cases of minor variations in attacks and how it may and may not be appropriate to communicate subtle differences in existing attack models through the use of annotations. In particular, the authors investigate commonalities across a range of existing models and identify where and how annotations may be helpful.

Findings

The authors propose that nuances (of attack properties) can be appended as annotations to existing attack models. Using annotations appropriately should enable analysts and researchers to express subtle but important variations in attacks that may not fit the model currently being used.

Research limitations/implications

This work only demonstrated a few simple, generic examples. In the future, the authors intend to investigate how this annotation approach can be extended further. Particularly, they intend to explore how annotations can be created computationally; the authors wish to obtain feedback from security analysts through interviews, identify where potential biases may arise and identify other real-world applications.

Originality/value

The value of this paper is that the authors demonstrate how annotations may help analysts communicate and ask better questions during identification of unknown aspects of attacks faster,e.g. as a means of storing mental notes in a structured manner, especially while facing zero-day attacks when information is incomplete.

Details

PSU Research Review, vol. 1 no. 2
Type: Research Article
ISSN: 2399-1747

Keywords

Open Access
Article
Publication date: 3 August 2022

Guqiang Luo, Kun Tracy Wang and Yue Wu

Using a sample of 9,898 firm-year observations from 1,821 unique Chinese listed firms over the period from 2004 to 2019, this study aims to investigate whether the market rewards…

1015

Abstract

Purpose

Using a sample of 9,898 firm-year observations from 1,821 unique Chinese listed firms over the period from 2004 to 2019, this study aims to investigate whether the market rewards meeting or beating analyst earnings expectations (MBE).

Design/methodology/approach

The authors use an event study methodology to capture market reactions to MBE.

Findings

The authors document a stock return premium for beating analyst forecasts by a wide margin. However, there is no stock return premium for firms that meet or just beat analyst forecasts, suggesting that the market is skeptical of earnings management by these firms. This market underreaction is more pronounced for firms with weak external monitoring. Further analysis shows that meeting or just beating analyst forecasts is indicative of superior future financial performance. The authors do not find firms using earnings management to meet or just beat analyst forecasts.

Research limitations/implications

The authors provide evidence of market underreaction to meeting or just beating analyst forecasts, with the market's over-skepticism of earnings management being a plausible mechanism for this phenomenon.

Practical implications

The findings of this study are informative to researchers, market participants and regulators concerned about the impact of analysts and earnings management and interested in detecting and constraining managers' earnings management.

Originality/value

The authors provide new insights into how the market reacts to MBE by showing that the market appears to focus on using meeting or just beating analyst forecasts as an indicator of earnings management, while it does not detect managed MBE. Meeting or just beating analyst forecasts is commonly used as a proxy for earnings management in the literature. However, the findings suggest that it is a noisy proxy for earnings management.

Details

China Accounting and Finance Review, vol. 25 no. 2
Type: Research Article
ISSN: 1029-807X

Keywords

Open Access
Article
Publication date: 15 July 2020

Pick-Soon Ling, Ruzita Abdul-Rahim and Fathin Faizah Said

This study aims to investigate Malaysian stock market efficiency from the view of Sharīʿah-compliant and conventional stocks based on the effectiveness of technical trading…

3451

Abstract

Purpose

This study aims to investigate Malaysian stock market efficiency from the view of Sharīʿah-compliant and conventional stocks based on the effectiveness of technical trading strategies.

Design/methodology/approach

This study uses unconventional trading strategies that mix buy recommendations of Bursa Malaysia analysts with sell signals generated from 10 selected technical trading strategies (simple moving average, moving average envelopes, Bollinger Bands, momentum, commodity channel index, relative strength index, stochastic, Williams percentage range, moving average convergence divergence oscillator and shooting star) that are detected using ChartNexus. The period from 1 January 2013 until 31 December 2015 produces a total sample consisting of 1,265 buy recommendations of 125 Sharīʿah-compliant stocks and 400 buy recommendations of conventional stocks. The study period is extended until 31 March 2016 to provide an ample time for detecting the sell signal especially for buy recommendations that are released towards the end of 2015.

Findings

The resulting Jensen’s alpha show 8 out of 10 strategies are effective in generating abnormal returns in Sharīʿah-compliant samples while only 3 out of 10 strategies are effective in conventional samples. Prominent effectiveness of technical trading strategies in Sharīʿah-compliant stocks implies clear inefficiency in that stock market segment as opposed to those of the conventional stocks.

Originality/value

The results based on unconventional trading strategies provide new insights of Malaysian stock market efficiency especially in Sharīʿah-compliant and conventional stocks. The paper provides more robust findings on market efficiency as firms’ equity level data were focussed together with analysts’ buy recommendations from Bursa Malaysia.

Details

ISRA International Journal of Islamic Finance, vol. 12 no. 2
Type: Research Article
ISSN: 0128-1976

Keywords

Open Access
Article
Publication date: 20 September 2022

Liangyin Chen, Jun Huang, Danqi Hu and Xinyuan Chen

This paper aims to examine the effect of dividend regulation on cost stickiness (i.e. the asymmetric change in firm expense between sales increase and sales decrease) and explore…

Abstract

Purpose

This paper aims to examine the effect of dividend regulation on cost stickiness (i.e. the asymmetric change in firm expense between sales increase and sales decrease) and explore the underlying mechanism.

Design/methodology/approach

Based on the quasi-natural experiment of the Guideline for Dividend Policy of Listed Companies issued by the Shanghai Stock Exchange (SSE) in 2013, the authors employ a difference-in-difference model to investigate the impact of dividend regulation on cost stickiness.

Findings

The authors find that the cost stickiness of treatment group firms has decreased significantly when compared with control group firms after the dividend regulation. Moreover, this effect is more pronounced among firms in lower marketization regions, in lower competition industries and those with less analyst coverage and lower cash flow levels. Further analyses show that dividend regulation reduces the cost stickiness of firms by mitigating agency problems. Finally, the conclusion holds after several robust tests, including controlling for firm fixed effect, propensity score matching (PSM), placebo test and reconstruction of expense variable.

Originality/value

This paper confirms that dividend regulation serves an important role in corporate governance, which reduces firms' agency costs and thereby decreases cost stickiness. The conclusions shed light on the dividend policies of listed companies and capital market regulation in the future.

Details

China Accounting and Finance Review, vol. 24 no. 4
Type: Research Article
ISSN: 1029-807X

Keywords

Open Access
Article
Publication date: 2 February 2024

Sumathi Annamalai and Aditi Vasunandan

With Industry 4.0 and the extensive rise of smart technologies, we are seeing remarkable transformations in work practices and workplaces. Scholars report the phenomenal progress…

Abstract

Purpose

With Industry 4.0 and the extensive rise of smart technologies, we are seeing remarkable transformations in work practices and workplaces. Scholars report the phenomenal progress of smart technologies. At the same time, we can hear the rhetoric emphasising their potential threats. This study focusses on how and where intelligent machines are leveraged in the workplace, how humans co-working with intelligent machines are affected and what they believe can be done to mitigate the risks of the increased use of intelligent machines.

Design/methodology/approach

We conducted in-depth interviews with 15 respondents working in various leadership capacities associated with intelligent machines and technologies. Using NVivo, we coded and churned out the themes from the qualitative data collected.

Findings

This study shows how intelligent machines are leveraged across different industries, ranging from chatbots, intelligent sensors, cognitive systems and computer vision to the replica of the entire human being. They are used end-to-end in the value chain, increasing productivity, complementing human workers’ skillsets and augmenting decisions made by human workers. Human workers experience a blend of positive and negative emotions whilst co-working with intelligent machines, which influences their job satisfaction level. Organisations adopt several anticipatory strategies, like transforming into a learning organisation, identifying futuristic technologies and upskilling their human workers, regularly conducting social learning events and designing accelerated career paths to embrace intelligent technologies.

Originality/value

This study seeks to understand the emotional and practical implications of the use of intelligent machines by humans and how both entities can integrate and complement each other. These insights can help organisations and employees understand what future workplaces and practices will look like and how to remain relevant in this transformation.

Details

Central European Management Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2658-0845

Keywords

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