This paper shows that an important link between investor sentiment and firm overvaluation is optimistic earnings … expectations, and that management earnings guidance aids in resolving sentiment-driven overvaluation. Using the firm … following high sentiment periods fall within the three-day window around management earnings guidance issuance. Comparisons of …

Over the past 12 years, financial analysts across the world have been optimistically wrong with their 12-month earnings … forecasts by 25.3%. This study may be the first of its kind to assess analyst earnings forecast accuracy at all listed companies … research: First, analyst earnings forecasts globally were 25.3% optimistically wrong, meaning on average, analysts started each …

affect future earnings announcements. A cross-sectional equity trading strategy that exploits this inefficiency yields an … annualized Sharpe Ratio of 0.57. Stock prices respond to lagged quarterly oil price changes when firms start announcing earnings … absolute oil price changes and during the peak of the earnings cycle. The predictability we document is not explained by risk …

investment strategies that rely on information in analyst earnings-per-share forecasts and stock prices. Over a time period of … existing pure earnings-forecast momentum strategies and remain profitable after transaction costs. We show that analysts …

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 … forecast when actual earnings exceed the consensus and the most pessimistic forecast when the consensus exceeds actual earnings …

The purpose of this paper is to analyse the predictability of earnings information before the quarterly disclosure date …. Two categories of firms are contrasted: the firms that announce better quarterly earnings than the prior period and the … estimation with fixed and random effects is applied to examine the impact of quarterly earnings announcements on stock returns …

A great number of academic papers evaluate the potential for incentive-driven bias in sell-side analysts' earnings … lower absolute deviation and the information in their earnings forecasts has predictive value for near-term stock returns …. We propose the latter result as a previously unidentified form of earnings momentum. We find that this form of earnings …

accuracy. We show a positive intra-portfolio information spillover effect, that is, the management earnings forecasts issued by …

approaches and develop a new approach that reduces this bias by directly forecasting future earnings. I estimate 'characteristic … forecasts' using large sample relations to map current firm characteristics into forecasts of future earnings. Contrasting …