THE PERFORMANCE OF
| dc.contributor.author | McLaren, Grant McLaren | |
| dc.date.accessioned | 2011-05-13T10:11:18Z | |
| dc.date.available | 2011-05-13T10:11:18Z | |
| dc.date.issued | 2011-05-13 | |
| dc.description | MBA - WBS | en_US |
| dc.description.abstract | Previous research has reached no consensus on the performance of brokerage firms’ stock recommendations. This study evaluates whether brokerage firms’ stock recommendations have investment value, and whether individual investors can profit from these stock recommendations. An event study was used to determine if stock recommendations produced significant abnormal returns. The abnormal returns were calculated by stripping out three market effects from the returns of shares listed on the JSE, namely the size effect, the value effect and the resources effect. The removal of these market effects ensured that abnormal returns could be better attributed to published consensus recommendations. The research shows that consensus recommendations do not provide investment value. The research did find positive abnormal returns for stocks which are the subject of upgrade recommendations. However, individual investors could not actually profit from upgrade consensus recommendations as the magnitude of the abnormal returns would not be sufficient to offset transaction costs and broker commissions | en_US |
| dc.identifier.uri | http://hdl.handle.net/10539/9755 | |
| dc.language.iso | en | en_US |
| dc.subject | Stock brokers | en_US |
| dc.subject | Brokerage firms | en_US |
| dc.title | THE PERFORMANCE OF | en_US |
| dc.type | Thesis | en_US |