Choudhry, Taufiq, Dissanaike, Gishan, Jayasekera, Ranadeva, Kang, Woo-Young ORCID: https://orcid.org/0000-0001-6615-721X and Nnadi, Matthias (2021) Loss sensitive investors and positively biased analysts in Hong Kong stock market. Review of Quantitative Finance and Accounting, 57. pp. 1345-1371. ISSN 0924-865X (Print), 1573-7179 (Online) (doi:10.1007/s11156-021-00980-7)

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Abstract

The Hong Kong stock market is known to be highly volatile. Professional investors have a strong demand for timely information because of the infrequent nature of Hong Kong analysts’ interim reports (Cheng et al., 2003). Our paper provides a comprehensive study of investor reactions to analysts’ recommendations in the Hong Kong stock market from 2009 to 2014 under different sentiment scenarios. We find that analysts’ recommendation upgrades and downgrades deliver significant information to the Hong Kong stock market. However, analysts’ initiation coverages convey little information and bring about limited impact to the stock market. In addition, analysts’ upgrades and downgrades result in significant differential price impacts in bullish and the bearish phases.

Item Type:	Article
Uncontrolled Keywords:	analyst recommendation, downgrade, upgrade, Hong Kong Stock Exchange, perception bias, market sentiment
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HF Commerce H Social Sciences > HF Commerce > HF5601 Accounting
Faculty / School / Research Centre / Research Group:	Greenwich Business School Greenwich Business School > School of Accounting, Finance and Economics
Last Modified:	16 Dec 2025 15:12
URI:	https://gala.gre.ac.uk/id/eprint/51992

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