Negativity of Neutrality – Study of Brokerage Recommendations in Poland
Negativity of Neutrality – Study of Brokerage Recommendations in Poland

Summary/Abstract: Stock market recommendations are an important tool to support decision making in a group of investors who do not have specialist knowledge and who are not able to make detailed analyzes and valuations of individual companies on their own. The effectiveness of the recommendations has been the research subject of many researchers around the world for several decades. Most of the research performed indicates that the recommendations bring added value to the investment process. However, it should be noted that most of the works do not refer to neutral recommendations, which do not indicate clearly which decision should the investor take. In this work, analysis of neutral recommendations was made interms of generating above-average rates of return in a short time horizon. The results of the study indicated that neutral recommendations are received in a negative way by investors and cause additional negative rates of return in the perspective of up to 10 sessions from the date of publication of the recommendation.

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