EASTON, PETER D.; SOMMERS, GREGORY A. - In: Journal of Accounting Research 45 (2007) 5, pp. 983-1015
<heading id="h1" level="1" implicit="yes" format="display">ABSTRACT</heading>Recent literature has used analysts' earnings forecasts, which are known to be optimistic, to estimate implied expected rates of return, yielding upwardly biased estimates. We estimate that the bias, computed as the difference between the estimates of the implied expected rate of return...