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We hypothesize that connections with buy-side analysts provide a sell-side analyst with private information generated by the buy-side that enhances the quality of sell-side research. We proxy for these connections with the number of stocks at the intersection of stocks held in the portfolios of...
Persistent link: https://www.econbiz.de/10011743683
Prior literature refers to economic incentives to generate investment banking business and trading commissions as explanations for analyst publication of forecasts of firms' long-term earnings growth (LTG). Prior research also documents wildly optimistic LTG forecasts and a negative relation...
Persistent link: https://www.econbiz.de/10013037653
The business press generally reports news in quarterly earnings announcements based on the difference between actual earnings and two salient benchmarks: earnings of the same quarter in the previous year, and a consensus drawn from a distribution of forecasts by financial analysts. We evaluate...
Persistent link: https://www.econbiz.de/10012992160
This paper links academic accounting research on comprehensive income reporting with the accounting standard-setting efforts of the FASB and the IASB. We begin by discussing the development of reporting other comprehensive income and we identify a significant weakness in the FASB's Conceptual...
Persistent link: https://www.econbiz.de/10013108503
This paper decomposes the cash component of earnings and analyzes persistence characteristics and pricing implications of various subcomponents, with particular attention on changes in cash. Changes in underlying fundamentals might dictate changes in cash to new optimal levels. Alternatively,...
Persistent link: https://www.econbiz.de/10013058531
This study examines biases in stock prices and financial analysts' earnings forecasts. These biases take the form of systematic overweighting or underweighting of the persistence characteristics of cash versus accrual earnings components. Our evidence suggests that stock prices tend to...
Persistent link: https://www.econbiz.de/10012938521
We hypothesize that connections with buy-side analysts provide a sell-side analyst with private information generated by the buy-side that enhances the quality of sell-side research. We proxy for these connections with the number of stocks at the intersection of stocks held in the portfolios of...
Persistent link: https://www.econbiz.de/10012932538
This paper compares Value Line and I/B/E/S analyst earnings forecasts in terms of accuracy, rationality, and as proxies for market expectations. Using more recent data and forming consensus forecasts from the I/B/E/S detail files, we reach different conclusions than Philbrick and Ricks [1991],...
Persistent link: https://www.econbiz.de/10012739141
This paper develops a taxonomy of research examining the role of financial analysts in capital markets. The paper builds on the perspectives provided by Schipper [Schipper, K. (1991). Analysts' forecasts. Accounting Horizons, 5, 105-131] and Brown [Brown, L. (1993). Earnings forecasting...
Persistent link: https://www.econbiz.de/10012772732
Persistent link: https://www.econbiz.de/10014537502