Age of Firms and the Value of Analyst Recommendation

Thaker, H. M. T.; M, A. 2019. Age of Firms and the Value of Analyst Recommendation, J. Bus. Econ. Review 4 (2): 90 – 96 DOI:10.35609/jber.2019.4.2(3)

7 Pages Posted: 10 Sep 2019

See all articles by Hassanudin Mohd Thas Thaker

Hassanudin Mohd Thas Thaker

Sunway University, Malaysia - Sunway University Business School

Azhar Mohamad

International Islamic University Malaysia

Date Written: June 19, 2019

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.

Type of Paper - Empirical.

Keywords: Age; Value; Analyst Report; Malaysia

JEL Classification: G30, G32, G39

Suggested Citation

Thaker, Hassanudin Mohd Thas and Mohamad, Azhar, Age of Firms and the Value of Analyst Recommendation (June 19, 2019). Thaker, H. M. T.; M, A. 2019. Age of Firms and the Value of Analyst Recommendation, J. Bus. Econ. Review 4 (2): 90 – 96 DOI:10.35609/jber.2019.4.2(3), Available at SSRN: https://ssrn.com/abstract=3420827

Hassanudin Mohd Thas Thaker (Contact Author)

Sunway University, Malaysia - Sunway University Business School ( email )

No 5 Jalan University
Bandar Sunway
Bandar sunway, Selangor 47500
Malaysia

Azhar Mohamad

International Islamic University Malaysia ( email )

Kulliyyah Economics and Management Sciences
Department Economics
Kuala Lumpur, Selangor D.E 50728
Malaysia

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