Purpose: The purpose of this paper is to investigate the valuation impact of firm’s strategic choices in a setting of intangibles-rich industries. Design/methodology/approach: The authors adopt the conceptual framework of Miles and Snow (1978, 2003), which identifies three viable types of...

In this paper, we examine 12,954 equity research reports for 24 firms that are subject to enforcement actions by the U.S. Securities and Exchange Commission (SEC) for violations of the Foreign Corrupt Practices Act (FCPA). We search the text of the equity research reports for a number of...

The primary objectives of this paper are to critically analyze and extend a fundamentals-based investment criterion (HSBC's Rating to Economic Profit – REP) and to examine its ability to justify analysts' target prices. Although variations of this model are used extensively in practice, REP...

We investigate whether the choice of valuation model affects the forecast accuracy of the target prices that investment analysts issue in their equity research reports, controlling for factors that influence this choice. We examine 490 equity research reports from international investment houses...

In this study, we investigate how financial analysts implement the Sum-of-the-Parts (SOTP) valuation framework. Although SOTP constitutes a popular valuation approach among sophisticated practitioners and investors, it is mostly ignored by researchers and academics. We adopt a structured content...

This paper adopts a structured positive approach to explaining the valuation practices of financial analysts by studying the valuation methodologies contained in 104 analysts' reports from international investment banks for 26 large U.K.-listed companies drawn from the beverages, electronics,...

We investigate whether the choice of valuation model affects the forecast accuracy of the target prices that investment analysts issue in their equity research reports, controlling for factors that influence this choice. We examine 490 equity research reports from international investment houses...