This survey reviews the literature on sell-side analysts' forecasts and their implications for asset pricing. We review the literature on the supply and demand forces shaping analysts' forecasting decisions as well as on the implications of the information they produce for both the cash flow and...

We examine the link between the scarcity of arbitrage capital and investors' response to firms' earnings information. Our tests are motivated by the idea that the cost of financing levered investment strategies (i.e., investing with borrowed funds) increases in the risk profile of the securities...

This survey reviews the literature on sell-side analysts' forecasts and its implications for asset pricing. We review the literature on the supply and demand forces shaping analysts' forecasting decisions as well as the implications of the information they produce for both the cash flow and the...