Showing 1 - 10 of 1,891
We investigate the relation between two market anomalies to provide insights into analysts' role as information intermediaries. Prior research finds that accruals and analyst earnings forecast revisions predict future returns. We find that the accrual and forecast revision strategies generate...
Persistent link: https://www.econbiz.de/10014072446
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...
Persistent link: https://www.econbiz.de/10013312824
We examine whether, and to what extent, investors focus on salient and easy-to-process features in responding to analyst forecasts. We focus on rounding as arguably the most salient forecast feature. We find that while rounding is only marginally associated with forecast accuracy, investors...
Persistent link: https://www.econbiz.de/10013058142
We correlate analysts' forecast errors with temporal variation in investor sentiment. We find that when sentiment is high, analysts' forecasts of one-year-ahead earnings and long-term earnings growth are relatively more optimistic for “uncertain” or “difficult to value” firms. Adding...
Persistent link: https://www.econbiz.de/10013116864
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...
Persistent link: https://www.econbiz.de/10012857242
We examine how analysts' incentives to build their reputation through accurate forecasting changes the relative association between analyst recommendations and rigorous valuation models versus valuation heuristics. Controlling for the firm-specific difficulty of valuation, we show that the...
Persistent link: https://www.econbiz.de/10012758377
Managerial behavior differs considerably when managers report quarterly profits versus losses. When they report profits, managers seek to just meet or slightly beat analyst estimates. When they report losses, managers do not attempt to meet or slightly beat analyst estimates. Instead, managers...
Persistent link: https://www.econbiz.de/10014218011
Under the assumption that audit quality relates positively to unobservable financial reporting reliability, we investigate whether audit quality is associated with the predictability of accounting earnings by focusing on analyst earnings forecast properties. The evidence shows that analysts'...
Persistent link: https://www.econbiz.de/10014224291
Crowdsourcing — when a task normally performed by employees is outsourced to a large network of people via an open call — is making inroads into the investment research industry. We shed light on this new phenomenon by examining the value of crowdsourced earnings forecasts. Our sample...
Persistent link: https://www.econbiz.de/10013007142
Under the assumption that audit quality relates positively to unobservable financial reporting reliability, we investigate whether audit quality is associated with the predictability of accounting earnings by focusing on analyst earnings forecast properties. The evidence shows that analysts'...
Persistent link: https://www.econbiz.de/10012773262