Showing 1 - 10 of 2,529
We address whether analysts bias earnings forecast revisions and convey the bias using forecast revision consistency, i.e., the extent to which analyst reports with earnings forecast revisions include stock recommendation and target price revisions consistent in sign with the earnings forecast...
Persistent link: https://www.econbiz.de/10014359306
We examine the economic determinants of short-sale supply, and its consequences for future stock returns. Lendable supply increases with expected borrowing costs and decreases with financial statement constructs that indicate overvaluation. Although rising loan fees help ease supply, we find...
Persistent link: https://www.econbiz.de/10010259797
We investigate whether investors are misled by firms that exclude particular expenses in calculating non-GAAP earnings in order to beat analysts' earnings forecasts. Our empirical analyses suggest that firms that pursue a strategy of non-GAAP reporting to beat analysts' earnings forecasts not...
Persistent link: https://www.econbiz.de/10012864015
Kauser, Taffler and Tan (2009) document a going-concern market anomaly in the U.S., resulting in a sizable downward drift over the subsequent one-year period for first-time going-concern recipients. The authors argue that adverse signals regarding viability are not being impounded appropriately...
Persistent link: https://www.econbiz.de/10012996814
The increase in investor diversity over the last 35-40 years (ICI 2014) prompted us to revisit trading volume reactions to earnings announcements and how these reactions vary with firm size. This increase in investor diversity would likely lead to an increase in differences in the precision of...
Persistent link: https://www.econbiz.de/10012997546
Motivated by the requirements of the UK Companies Act 2006 and the subsequent Directive 2014/95/EU of the European Parliament and of the Council, we investigate the relationship between environmental and social disclosures (analyst following) and analyst following (environmental and social...
Persistent link: https://www.econbiz.de/10012966748
We show that firms with higher NOA (net operating assets) subsequently experience lower stock returns in at least nine out of sixteen European countries, consistent with the U.S. evidence. This negative relation between NOA and future returns is strongly linked with cross country variation in...
Persistent link: https://www.econbiz.de/10012967258
The main objective of this paper is to examine the persistence, pricing and economic significance of the cash component of earnings in U.K. listed firms from 1981 to 2013. In so doing, we break down the cash component of earnings into changes in the cash balance and into issuances/distributions...
Persistent link: https://www.econbiz.de/10012969940
All are aware of the fact that Return on Equity (ROE) is equal to Profit After Tax (PAT) divided by Owners' Equity. But, ROE represented by a single number begs more questions than it can answer. Such a singularity cannot take us far away to understand the complexity arising out of the interplay...
Persistent link: https://www.econbiz.de/10013030416
We establish a robust link between momentum and accruals. Momentum profitability is mostly concentrated in firms with high accruals. Cross-sectional characteristics of momentum previously documented do not subsume the effect of accruals on momentum. Loser stocks with high accruals experience...
Persistent link: https://www.econbiz.de/10013038195