Governance reforms and performance of analysts' recommendations: Pre- and post-crisis analysis from Asian emerging markets
Author's Department
Management Department
Document Type
Research Article
Publication Title
Corporate Ownership and Control
Publication Date
7-25-2013
Abstract
How does change in corporate governance regimes effect financial analysts? Are analysts able to incorporate the effect of better governance regimes in their recommendations? This paper aims to answer these questions by documenting the effect of corporate governance mechanisms on the performance of analysts? recommendations in Asian emerging markets during the pre-crisis and the post-crisis periods. Using a large dataset of analyst recommendations, we document that analysts were not able to generate informative recommendations during the post-crisis period (better governance regime). We report that performance of analyst recommendations deteriorated significantly during the post-crisis period relative to the pre-crisis period (poor governance regime). Our results indicate relative ineffectiveness of governance reforms initiated after the Asian financial crisis of 1997-98.
First Page
129
Last Page
141
Recommended Citation
APA Citation
Farooq, O.
(2013). Governance reforms and performance of analysts' recommendations: Pre- and post-crisis analysis from Asian emerging markets. Corporate Ownership and Control, 10(1900-01-00), 129–141.
https://fount.aucegypt.edu/faculty_journal_articles/648
MLA Citation
Farooq, Omar
"Governance reforms and performance of analysts' recommendations: Pre- and post-crisis analysis from Asian emerging markets." Corporate Ownership and Control, vol. 10,no. 1900-01-00, 2013, pp. 129–141.
https://fount.aucegypt.edu/faculty_journal_articles/648