{"title":"Do Institutional Investors Use Earnings Forecasts from Financial Analysts? Evidence from China's Stock Market","authors":"Fang-fei Ding, Min Chen, Zhongxin Wu","doi":"10.2753/REE1540-496X5001S109","DOIUrl":null,"url":null,"abstract":"China has an immature stock market. The typical features of an emerging market may have impaired investors' confidence in Chinese financial analysts. We investigate the association between institutional investors' ownership holding changes and financial analysts' earnings forecast revisions. Results show that there is no significant relationship between them, which suggests that institutional investors do not adopt financial analysts' earnings forecasts when making investment decisions. The result supports the view that sophisticated Chinese institutional investors do not respond to Chinese financial analysts' reports due to lack of trust.","PeriodicalId":11693,"journal":{"name":"Emerging Markets Finance and Trade","volume":"26 1","pages":"134 - 147"},"PeriodicalIF":3.1000,"publicationDate":"2014-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"7","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Emerging Markets Finance and Trade","FirstCategoryId":"96","ListUrlMain":"https://doi.org/10.2753/REE1540-496X5001S109","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 7
Abstract
China has an immature stock market. The typical features of an emerging market may have impaired investors' confidence in Chinese financial analysts. We investigate the association between institutional investors' ownership holding changes and financial analysts' earnings forecast revisions. Results show that there is no significant relationship between them, which suggests that institutional investors do not adopt financial analysts' earnings forecasts when making investment decisions. The result supports the view that sophisticated Chinese institutional investors do not respond to Chinese financial analysts' reports due to lack of trust.
期刊介绍：
Emerging Markets Finance and Trade publishes research papers on financial and economic aspects of emerging economies. The journal features contributions that are policy oriented and interdisciplinary, employing sound econometric methods, using macro, micro, financial, institutional, and political economy data. Geographical coverage includes emerging market economies of Europe, the Balkans, the Middle East, Asia, Africa, and Latin America. Additionally, the journal will publish thematic issues and occasional special issues featuring selected research papers from major conferences worldwide.
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