The Effect of Information Asymmetry on Target Price

??? ??????????????? ?????????????????? ??????????????? ???????????? ??? ????????? ??????????????? ????????? ???????????? ???????????????. ??????, ?????????????????? ????????? ??????????????? ?????? ????????? ????????? ????????? ????????? ???????????? ???????????? ????????? ???????????? ?????? ????????? ??????, ????????? ??????????????? ?????? ?????????????????? ??????????????? ????????????, ?????????????????? ??? ????????? ?????? ?????????????????? ?????? ????????? ???????????? ????????? ????????? ??? ???????????? ????????? ?????????????????? ??? ????????? ???????????? ?????????????????? ????????? ????????? ??????????????? ????????? ?????????. ????????????, ?????????????????? ????????? ?????????????????? ???????????? ????????? ??? ????????? ????????? ????????? ??????????????? ?????????????????? ???????????? ????????? ????????? ????????? ????????? ???????????????. ??????????????? ????????? ??????????????? ???????????? ?????????????????? ????????? ???????????? ???????????????. ?????????????????? ??? ????????? ??????????????? ?????? ????????? ??????????????? ???????????? ????????? ??? ????????? ?????????????????? ??????????????? ???????????? ???????????? ?????? ????????? ????????? ????????? ????????? ???????????? ????????? ?????? ????????? ??????????????? ???????????? ????????? ????????? ???????????????. ????????????, ?????????????????? ????????? ??????????????? ???????????? ??? ??????????????? ????????? ??? ?????? ????????? ??? ?????????. ?????? ?????? ??????????????? ????????? ??????????????? ?????????????????? ??????????????? ????????? ???????????? ????????? ???????????? ????????????, ??????????????? ????????? ??????????????? ??????????????? ????????? ?????? ???????????? ????????? ?????????????????? ???????????? ????????? ????????????????????? ??????????????? ????????? ??????????????? ????????? ????????? ????????? ??????.This study investigates the effect of firms` information environment (information asymmetry) on analysts` target price forecast process. Compared to the current stock price, the target price suggested by analysts includes additional information because analysts reflect their expertise and privately-collected information into their target price forecasts. So if information asymmetry is large, we expect more disagreement among the target price forecasts and more difficulty in achieving those forecasts. Using the daily stock return volatility (VOLA) as s proxy for information asymmetry, we find that (???) the larger information asymmetry, the more deviation in analysts` target price forecasts, and (???) the more inaccurate analysts` target price forecasts are. These results show that the information environment affects analysts` forecasts and suggest that investors need to incorporate the information environment into their investment decision-making