The Conflict of Financial Analysts\' Recommendations on Shipping Companies\' Shares

This study analysis the dependence of stock returns on the conflicting recommendations of financial analysts on stocks of ship companies for 2015-2017. At the moment, this industry is in crisis, which began in 2008 and was particularly evident in 2015, when one of the industry leaders went bankrupt. When the state of the industry is uncertain, analysts are more likely to issue recommendations that differ from those of the majority. Furthermore, there is no consensus about the impact of this indicator on the share returns in the literature. Some regressions were constructed, using a sample of 33 ship companies, including the industry leader, Maersk Line, across the cross-sections in different time intervals. Based on the obtained results, it was concluded that the conflicts in the recommendations cannot be used as a measure of risk.