The effect of analyst's earning forecasts on their stock recommendations

Abstract EN

This study use a sample which consists of 88 observations of Egyptian listed firms, from the period of 2009 – 2019.

This research investigates the role of financial analysts which is helping investors to make stock investment decisions by issuing earnings forecasts and stock recommendations to the market.

Users of earnings forecast reports will make their own subjective evaluations about the validity and importance of such reports; these evaluations can determine the degree to which the users will trust in, and adopt, the reports‟ recommendations when they make investment decisions.

Finally findings revealed positive relationship between forecast accuracy and recommendations as financial analysts serve as information intermediaries by providing reports that include earnings forecasts and their stock recommendations.

These recommendations help investors to make their decisions.