— This paper focuses on the structure of recommendations published in the Polish capital market in the years 2009-2012 in relation to the largest public companies. The conducted research compares the moment of publication of recommendations with macroeconomic determinants in Poland and analysis the characteristics of recommendations, such as price range. The problem analyzed in this paper comes from the thesis that analysts present an excessive optimism while issuing recommendations for companies and try to avoid strong and unambiguous recommendations. The research results showed that the lack of strict and unambiguous procedures and methods of valuation of the companies by analysts causes subjectivity which leads to the occurrence of the effects described by behavioral theories. The authors argue that the structure of recommendations and the specificity of dates of their publication shows that optimism is typical for most analysts.
— Recommendations, capital market, behavioral finance.
Radosław Pastusiak and Jakub Keller are with the Department of Corporate Finance, Faculty Economic and Sociological at University of Lodz in Poland, St. Rewolucji 1905 r, nr 39, 90-255 Łódź (e-mail: email@example.com, firstname.lastname@example.org).
Cite: Radosław Pastusiak and Jakub Keller, " The Structure of Stock Exchange Recommendations in Poland in the Context of the Anchoring Effect and Excessive Optimism," Journal of Economics, Business and Management vol. 1, no. 3, pp. 304-309, 2013.