Asarela Sakatih, Asarela
University of Sam Ratulangi Manado

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INVESTOR RESPONSE TO ANALYST RECOMMENDATION IN STOCK TRADING IN MANADO Sakatih, Asarela
Jurnal EMBA : Jurnal Riset Ekonomi, Manajemen, Bisnis dan Akuntansi Vol 3, No 2 (2015): JE V3 No.2 Juni 2015, Hal. 001 - 123
Publisher : Universitas Sam Ratulangi

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (418.934 KB) | DOI: 10.35794/emba.3.2.2015.8353

Abstract

Analyst show how important their role in stock trading and some previous researches show their recommendations give high return to the investor who follow it. But not all investors follow their recommendation; it is all depend on investor behavior and their trust to the analyst. This is interesting to learn how investor in Manado gives response to their recommendation. We investigate investor through interview to find out how the investor response to the recommendation given by the analyst. The population of this research is all investor in Manado with 10 Informants using purposive sampling method. Based on analysis preference, investor using technical analysis shows no response to the recommendation. Investor also show less attracted to the recommendation because of trust issue. The result shows that Manado investor has low response to the analyst recommendation. We recommend the analyst to have clear standard recommendation and for the investor to take all recommendation into consideration, give some weight to the recommendation into investment decision. Keywords: investor, analyst recommendation, stock trading