TAKING ADVANTAGE OF THE LOCAL ADVANTAGE? - Investment value of the analyst local advantage in the Finnish stock market in 2006–2014

An investor can either conduct independent analysis or rely on the analyses of others. Stock analysts provide markets with expectations regarding particular securities. However, analysts have different capabilities and resources, of which investors are seldom cognizant. The local advantage refers to the advantage stemming from cultural or geographical proximity to securities analyzed. The research has confirmed that local agents are generally more accurate or produce excess returns. This thesis tests the investment value of the local advantage regarding Finnish stocks via target price data. The empirical section investigates the local advantage from several aspects. It is discovered that local analysts were more focused on certain sectors generally located close to consumer markets. Market reactions to target price revisions were generally insignificant with the exception to local positive target prices. Both local and foreign target prices were overly optimistic and exhibited signs of herding. Neither group could be identified as a leader or follower of new information. Additionally, foreign price change expectations were more in line with the quantitative models and ideas such as beta or return mean reversion. The locals were more accurate than foreign analysts in 5 out of 9 sectors and vice versa in one. These sectors were somewhat in line with coverage decisions and buttressed the idea of local advantage stemming from proximity to markets, not to headquarters. The accuracy advantage was dependent on sample years and on the measure used. Local analysts ranked magnitudes of price changes more accurately in optimistic and foreign analysts in pessimistic target prices. Directional accuracy of both groups was under 50% and target prices held no linear predictive power. Investment value of target prices were tested by forming mean-variance efficient portfolios. Parallel to differing accuracies in the levels of expectations foreign portfolio performed better when short sales were allowed and local better when disallowed. Both local and non-local portfolios performed worse than a passive index fund, albeit not statistically significantly. This was in line with previously reported low overall accuracy and different accuracy profiles. Refraining from estimating individual stock returns altogether produced statistically significantly higher Sharpe ratios compared to local or foreign portfolios. The proposed method of testing the investment value of target prices of different groups suffered from some inconsistencies. Nevertheless, these results are of interest to investors seeking the advice of security analysts.

Instruction générale relative à l'état civil

Collection : Journal officiel de la République française ; [brochure] 1043

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Même ouvrage.Livres 3 et 5. — Comparer Cat. imp., liv. 106, f. 21 (Xin fa suan shu, 100 livres).

崇禎曆書 。割圓八線表Chong zheng li shu. — Ge yuan ba xian biao.Collection relative au calendrier, années Chong zheng : explication et tables des sinus, etc.

Par le P. Jean Terenz (1576-1630) ; publié par les PP. Rho et Schall, sous la direction de Xu Guang qi. Édition antérieure à 1644.1 livre. — Comparer Cat. imp., liv. 106, f. 21 (Xin fa suan shu, 100 livres).

崇禎曆書 。日躔曆指Chong zheng li shu. — Ri chan li zhi.Collection relative au calendrier, années Chong zheng : théorie du mouvement du soleil.

Comparer aussi Cat. imp., liv. 106, f. 21 (Xin fa suan shu, 100 livres).Par les PP. Giacomo Rho (1590-1638), Nicolao Longobardi et Adam Schall ; publié sous la direction de Xu Guang qi. Édition antérieure à 1644. Texte et figures.

崇禎曆書 。日躔表Chong zheng li shu. — Ri chan biao.Collection relative au calendrier, années Chong zheng : tables du mouvement du soleil.

Voir aussi Cat. imp., liv. 106, f. 21 (Xin fa suan shu, 100 livres).Par les PP. Rho et Schall ; publié sous la direction de Xu Guang qi. Édition antérieure à 1644.

崇禎曆書Chong zheng li shu.Collection relative au calendrier, années Chong zheng.

Contient : I恒星曆指Heng xing li zhi.Théorie des étoiles fixes ; II恒星經緯表Heng xing jing wei biao.Tables des latitudes et longitudes des étoiles fixes

瘟疫彚編Wen yi hui bian.Collection relative aux maladies contagieuses.

D'après Wu You xing You ke, de Yan ling ; augmenté par Dai Tian zhang Lin jiao, de Shang yuan ; publié par Wang Qi lian Mei xian, de Jing yang, et par Liu Kui Song feng, de Zhu cheng. Préfaces par Wang Qi lian (1828) et par Di Kui guang, de Jing chuan (1828). Planches conservées chez la famille Wang, dans la salle Pei zhi.16 livres.