DOIONLINE 
DOIONLINE Publish In |
International Journal of Management and Applied Science (IJMAS)-IJMAS |
 Journal Home Volume Issue |
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Issue |
Volume-5,Issue-7 ( Jul, 2019 ) | |||||||||
Paper Title |
Brazil’s Stock Market: What Happened with the Price of the Stocks Recommended by Independent House of Analysis | |||||||||
Author Name |
Danilo Mattes Navarro Filho, Laura Freitas Pires, William Antonio Martins Dos Santos, Jose Pedro Da Silva Tribino | |||||||||
Affilition |
Federal Institute of Education, Science and Technology of Rio Grande do Sul – IFRS, Pontifical Catholic University of Rio Grande do Sul – PUCRS, University Center Ritter dos Reis – UNIRITTER | |||||||||
Pages |
115-119 | |||||||||
Abstract |
The capital market can be defined as a union of institutions and instruments that enables the transactions of securities, and so facilitating resources transfers between buyers and sellers. Currently in this market, there are plenty of opinion-forming companies, called independent houses of analysis, which make financial suggestions for their readers. Considering the importance of this topic, this research aims to analyze the price of the stocksre commended by Brazil’s largest independent house of analysis, through them abnormal returns. We studied 28 stocks that received a purchase recommendation between January 2015 and October 2018.These stocks were grouped by segment, totaling 11 segments, and we calculated the abnormal returns (AR) on the day of recommendation (AR0,j), on the subsequent day of the recommendation (AR1,j) and on two subsequent days after the recommendation (AR2,j), using Brazil’s most important stock market index (IBOVESPA) as reference. For the statistics purpose we used the T-Test and the ANOVA, adopting an error of 5%. As the result, we found a positive mean abnormal return on the day of the stock purchase recommendation and on the two subsequent days (AR0,j = 1.15%, AR1,j = 0.27% and AR2,j = 0.21%). The ANOVA test showed that there was no statistical difference between the abnormal return analysis of the distinct days (p = 0.1143). However, the T-test indicated a statistical difference between AR0,j and AR1,j (p = 0.0450) and between AR0,j and AR2,j (p = 0.0320), but not between AR1,j and AR2,j (p=0.8911). Keywords - Abnormal Return, Brazilian Stock Market, Independent House of Analysis, IBOVESPA | |||||||||
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