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We examine 1984-2018 data and show that the talent or ability of sell-side financial analysts affects a covered firm's information environment—more so than the simple number of analysts covering a firm. We find that while analysts in general produce market and industry-level information,...
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In this paper we investigate in depth the contractual partner relationships between sell-side security analysts and the correspondently involved parties, where the sell-side security analyst is considered as both principal and agent. We break the activities of security analysts down into a nexus...
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mechanisms determining price movements in financial markets. The resulting theory of financial informatics is applicable across a … the BHM theory, each asset is defined by a collection of cash flows and each such cash flow is associated with a family of … one or more so-called information processes that provide partial information about the cash flow. The theory is highly …
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Prior archival studies of analysts' forecasts have found evidence for systematic underreaction, systematic overreaction, and systematic optimism bias. Easterwood and Nutt (1999) attempt to reconcile the conflicting evidence by testing the robustness of Abarbanell and Bernard's (1992)...
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