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forecast revisions as forecast measures but, additionally, focus on implied return revisions, based on target prices … forecast measures increases (decreases) within the quarter prior to the observation period. Further results show that mutual … fund managers primarily attribute high information value to consensus forecast revisions that contain positive information …
Persistent link: https://www.econbiz.de/10013090451
, although they are supposed to be displayed in euros, which can severely distort results concerning earnings forecast accuracy …
Persistent link: https://www.econbiz.de/10012925798
Wealth transfer effects between stockholders and bondholders on the announcement date of changes in a firm's credit rating have primarily been examined a) for one type of security; b) on US capital markets; and c) by applying standard event study methods. In contrast to these investigations, we...
Persistent link: https://www.econbiz.de/10012984791
This paper examines whether textual management forecast commonalities that arise in a global crisis setting relate to … ex post forecast accuracy, and whether subsequent analyst revisions confirm the credibility relevance of these … those periods serve as catalysts for creating measures to assess management forecast credibility. After arguing that sales …
Persistent link: https://www.econbiz.de/10013230102
We assess whether skills allow sell-side analysts to mitigate the opaqueness of a whole industry. We rely on a sample of 5,150 recommendation changes relating to 80 European banks during a period that encompasses the financial and euro-zone crises. In contrast with other industries,...
Persistent link: https://www.econbiz.de/10012833563
We examine the effect of MiFID II, which mandated the unbundling and separate pricing of analyst research in Europe beginning in 2018. We find that the requirements of MiFID II were associated with a reduction in analyst following for European firms relative to US firms, with decreases in...
Persistent link: https://www.econbiz.de/10012868023
Long run returns of IPO firms' recommendations in Europe reveal possible conflicts of interest and pressures faced by financial analysts over the 1991-2005 period. Nevertheless, recent European legislations about investment research have led to better long run performance of IPO firms'...
Persistent link: https://www.econbiz.de/10013112142
This paper examines abnormal stock returns around the publication of 1,167 reports issued by 26 brokerage firms on 37 small caps admitted to listing on the Italian stock market from 2003 to 2011. The focus is on small caps going public because, for such firms, information asymmetries may be...
Persistent link: https://www.econbiz.de/10013087456
Using a sample that post-dates important regulatory changes in Europe, we show that a buy recommendation from an analyst on a “consensus sell” stock is, on average, sufficient to cause the stock to start to rise in value. Similarly, a sell recommendation on a “consensus buy” stock can...
Persistent link: https://www.econbiz.de/10013146416
Persistent link: https://www.econbiz.de/10011488576