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Investment Recommendation Optimism—Results of Empirical Research on Polish Capital Market

  • Michał J. Kowalski
  • Jadwiga Praźników
Conference paper
Part of the Advances in Intelligent Systems and Computing book series (AISC, volume 524)

Abstract

In the article, we analyzed the investment recommendation optimism on polish capital market. We defined the measure of optimism, which compares valuation of companies according to investment recommendation and fixed growth model. Over 170 investment recommendations form years 2014 and 2015 were investigated. The research indicates that the analysts are more likely to announce higher valuation than the historical value drivers and fixed growth model suggests. The highest optimistic perception occurs for companies with low historical financial scores. The highest optimism was observed for companies with “buy” recommendations as well as companies in the value destruction zone.

Keywords

Investment recommendation Valuation Optimism 

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Copyright information

© Springer International Publishing AG 2017

Authors and Affiliations

  1. 1.Faculty of Computer Science and ManagementWroclaw University of Science and TechnologyWrocławPoland

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