earticle

영어

This paper studies the stock price response centering on the target stock price change announcement date in order to find out whether the price change of analysts belonging to domestic securities firms can be useful information for investors. The data used in the empirical analysis of this study are the stocks of the securities market whose target price has changed for the past five years from January 2014 to December 2018. The changes of target price is 9,695 upwards and 9,971 downwards. The main findings of this study are as follows. First, when analysts changed target stock price, such as upwards and upwards, the stock price continued to rise from around D-200 to D+2. In addition, when the target stock price was changed from downward to upward, the share price fell, and then rose sharply from about D-30 before the announcement date to D+2 on the release date, and then gradually dropped thereafter. On the other hand, it is interesting to note that when analysts changed target stock price upwards, the pace of stock price increases as announcement date approach. Second, when analysts changed their target price continuously downward, the share price dropped sharply from about D-200 before the announcement date to D+3 on the release date, and then slowly dropped. In addition, when the price target was changed from upward to downward, the target stock price rises slowly and then drops sharply from D-60 days to D+1 days immediately after the announcement. The share price continued to fall after D+1, just after the announcement date. The results of this study are meaningful in that investors in the capital market are provided with appropriate information on the buying and selling timing and holding period in the short term.