Revista Mexicana de Economía y Finanzas, Vol. 9, No. 2, (2014)
en_US
Identifier
dc.identifier.issn
1665-5346
Identifier
dc.identifier.uri
https://repositorio.uchile.cl/handle/2250/138994
Abstract
dc.description.abstract
The main purpose of this study is to estimate the target price accuracy (TPA) of the Chilean
analysts and to find the factors that may affect its accuracy. We also seek to determine if there
exists a direct relationship between the precision level of the research divisions and abnormal
returns when a new target price (TP) is issued. The empirical results indicate that 26.2% of
TPs (overall) issued were successful. Abnormal returns associated to research divisions with
higher accuracy are not observed consistently. Lastly, we find significant abnormal returns
when a new TP announced is above (below) to the market consensus.