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Eid Mawlid al-Nabi, Eid al-Fitr and Eid al-Adha; optimism and impact on analysts’ recommendations: Evidence From MENA region

2017; Elsevier BV; Volume: 12; Issue: 1 Linguagem: Inglês

10.1016/j.aebj.2017.04.001

2214-4625

Harit Satt,

Housing Market and Economics

This study investigates holidays' effect in analyst recommendations in the MENA countries stock markets between 2004 and 2015. The findings show that on Pre-Holidays, analysts tend to issue pessimistic recommendations, and issue optimistic recommendations on Post-Holidays. Prior literature on day-of-the-week effect is endorse our results, which document an increase in stock prices during the week, and a decrease in stock prices over the weekend. We argue that analysts can benefit from the upward trend in stock prices during Post-Holidays by issuing optimistic recommendation. Analysts may as well benefit from the downward trend in stock prices by issuing pessimistic recommendations on Pre-Holidays.