File Download
There are no files associated with this item.
Links for fulltext
(May Require Subscription)
- Publisher Website: 10.1016/j.jempfin.2019.07.009
- Scopus: eid_2-s2.0-85072167617
- WOS: WOS:000501652100003
- Find via
Supplementary
- Citations:
- Appears in Collections:
Article: Investor Target Prices
| Title | Investor Target Prices |
|---|---|
| Authors | |
| Keywords | Delayed adjustment Forward-looking anchor Fraction of satisfied investors Investor target price Price drift |
| Issue Date | 2019 |
| Publisher | Elsevier BV. The Journal's web site is located at http://www.elsevier.com/locate/jempfin |
| Citation | Journal of Empirical Finance, 2019, v. 54, p. 39-57 How to Cite? |
| Abstract | We argue that investors have target prices as anchors for the stocks that they own; once a stock exceeds target prices, investors are satisfied and more likely to sell the stock. This increased selling can generate a price drift after good news. Consistent with our argument, using analyst-target-price forecasts as a proxy, we provide evidence that the fraction of satisfied investors generates the post-earnings-announcement drift, and stocks with a high fraction of satisfied investors experience stronger selling around announcements. This pattern is stronger for stocks with low institutional ownership and high uncertainty. © 2019 Elsevier B.V. |
| Persistent Identifier | http://hdl.handle.net/10722/274548 |
| ISSN | 2023 Impact Factor: 2.1 2023 SCImago Journal Rankings: 0.927 |
| ISI Accession Number ID |
| DC Field | Value | Language |
|---|---|---|
| dc.contributor.author | Huang, S | - |
| dc.contributor.author | Liu, X | - |
| dc.contributor.author | Yin, C | - |
| dc.date.accessioned | 2019-08-18T15:03:55Z | - |
| dc.date.available | 2019-08-18T15:03:55Z | - |
| dc.date.issued | 2019 | - |
| dc.identifier.citation | Journal of Empirical Finance, 2019, v. 54, p. 39-57 | - |
| dc.identifier.issn | 0927-5398 | - |
| dc.identifier.uri | http://hdl.handle.net/10722/274548 | - |
| dc.description.abstract | We argue that investors have target prices as anchors for the stocks that they own; once a stock exceeds target prices, investors are satisfied and more likely to sell the stock. This increased selling can generate a price drift after good news. Consistent with our argument, using analyst-target-price forecasts as a proxy, we provide evidence that the fraction of satisfied investors generates the post-earnings-announcement drift, and stocks with a high fraction of satisfied investors experience stronger selling around announcements. This pattern is stronger for stocks with low institutional ownership and high uncertainty. © 2019 Elsevier B.V. | - |
| dc.language | eng | - |
| dc.publisher | Elsevier BV. The Journal's web site is located at http://www.elsevier.com/locate/jempfin | - |
| dc.relation.ispartof | Journal of Empirical Finance | - |
| dc.subject | Delayed adjustment | - |
| dc.subject | Forward-looking anchor | - |
| dc.subject | Fraction of satisfied investors | - |
| dc.subject | Investor target price | - |
| dc.subject | Price drift | - |
| dc.title | Investor Target Prices | - |
| dc.type | Article | - |
| dc.identifier.email | Huang, S: huangsy@hku.hk | - |
| dc.identifier.authority | Huang, S=rp02052 | - |
| dc.description.nature | link_to_subscribed_fulltext | - |
| dc.identifier.doi | 10.1016/j.jempfin.2019.07.009 | - |
| dc.identifier.scopus | eid_2-s2.0-85072167617 | - |
| dc.identifier.hkuros | 301113 | - |
| dc.identifier.volume | 54 | - |
| dc.identifier.spage | 39 | - |
| dc.identifier.epage | 57 | - |
| dc.identifier.isi | WOS:000501652100003 | - |
| dc.publisher.place | Netherlands | - |
| dc.identifier.issnl | 0927-5398 | - |