We survey the textual sentiment literature, comparing and contrasting the various information sources, content analysis methods, and empirical models that have been used to date. We summarize the important and influential findings about how textual sentiment impacts on individual, firm-level and...

This paper reveals that in addition to fundamental factors, the 52-week high price and recent investor sentiment play an important role in analysts' target price formation. Analysts' forecasts of short-term earnings and long-term earnings growth are shown to be important explanatory variables...

This paper investigates the role of management earnings guidance to inform analysts about the effect of conservatism on earnings. Empirical evidence suggests that analysts fail to correctly estimate the downward-bias effect of conservatism, leading to optimistic earnings expectations. I...

We examine the association between goodwill impairment charges and analysts' forecast accuracy and dispersion. We compare firm-quarters that report periodic goodwill impairment charges during 2003-2007, and two control samples (matched on propensity scores and performance) of firm-quarters that...

We examine whether management earnings forecast errors exhibit serial correlation and how analysts understand the serial correlation property of management forecast errors. Management forecast errors should not exhibit serial correlation if managers efficiently process information in prior...

In this paper I investigate whether analysts' target price forecasts (TPFs) provide investors with useful direction after material accounting misstatements. I examine the magnitude, informativeness, and accuracy of analysts’ TPF revisions after misstatements. First, analysts revise their TPFs...

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...

This study examines the predictive power of comprehensive income and its individual components within the homogenous institutional setting of German IFRS firms. The results could be relevant for the standard setters IASB and FASB and their joint project “Financial Statement Presentation”. We...

Estimates of future quarterly earnings are of prime importance to capital market participants for formulating their investment decisions. Superior ability to forecast future earnings may enable investors to reap extraordinary returns by trading in the affected securities. The extant forecast...