| The present study proposed to identify whether analysts are biased when making earnings estimation and stock recommendations, the effect of insider trading on stock prices, and whether corporations with strong cultures perform better in the long run. In order to evaluate these assertions, relevant data for insider trading activities, stock recommendations, stock prices, and financial metrics of 27 out of the 30 Dow Jones Industrial Average companies were compiled and analyzed. The result of the analyses showed that analysts are not intentionally biased in their expectation and opinion, but they could be cognitively biased. Stock analysts' recommendations have little or no effect on stock prices and corporations with strong cultures performs better in the long run. |
