文章基本信息

标题：What factors motivate the analysts stock recommendation in a small emerging market? Evidence from Sri Lanka
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作者：M. M. Fonseka ; Gao-Liang Tian
期刊名称：African Journal of Business Management
印刷版ISSN：1993-8233
出版年度：2011
卷号：5
期号：26
页码：10908-10920
DOI：10.5897/AJBM11.1850
语种：English
出版社：Academic Journals
摘要：The purpose of this research is to determine the criteria used by the analysts for stock recommendation, identification of certain key factors which are useful for individual investors. According to the Modigliani-Miller theorem, the factors which affect dividend and capital gain could also influence investors. The regression analysis was used to identify the factors which influence the analysts’ stock recommendations. The P/E ratio, dividend yield, return on equity and rate of retained profit are the financial indicators which affected analysts’ advice. The market performance indicators of the return sort, volatility of shares have a significant impact on perfect investment decision. The emerging markets exhibit greater sensitivity to abnormal volume trading. However, we found that it is less sensitive to stock analysts’ recommendation in emerging Colombo Security Exchange (CSE). The stock analysts’ recommends more concern on firm dividend than capital gain. We fundamentally disagree with the argument of Modigliani-Miller theorem in terms of analysts’ stock recommendation and individual investor’s point of view. Behavior of individual investors in emerging CSE is preferred on low risk stable dividend than future capital gains.
关键词：Colombo Stock Exchange (CSE); stock analyst; individual investors; financial; risk; market