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Are analysts misleading investors? The case of goingconcern opinions

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  • Ruben M.T. Peixinho

    ()
    (University of the Algarve and CEFAGEUE, Portugal)

  • Richard J. Taffler

    (University of Évora, Department of Economics, ICAAM/CEFAGE)

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    Abstract

    This paper addresses the role of security analysts in the short-term market reaction to the publication of a going -concern (GC) modified audit report. We find that the 3-day mean abnormal return associated with the GC announcement is at least -6.9% for firms with analyst coverage in comparison with only -2.9% for non-covered firms (significant at

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    File URL: http://www.cefage.uevora.pt/en/content/download/2854/37932/version/1/file/2011_22.pdf
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    Bibliographic Info

    Paper provided by University of Evora, CEFAGE-UE (Portugal) in its series CEFAGE-UE Working Papers with number 2011_22.

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    Length: 46 pages
    Date of creation: 2011
    Date of revision:
    Handle: RePEc:cfe:wpcefa:2011_22

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    Keywords: Short-term market reaction; Analyst coverage; Stock recommendations; Goingconcern opinions.;

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