We examine whether the properties of earnings forecasts – bias and dispersion are different across periods when macroeconomic forecasts are optimistic than non-optimistic, and whether this difference in analyst forecast optimism is stronger during recessionary periods. We find that the...

We examine the effect of omitting research and development (R&D) expenditures, which is an important value-relevant item embedded in earnings for estimating the Ohlson (1995) valuation model for loss firms. Consistent with the analytical insight, we find that R&D expenditures are positively...

The investor composition in the US stock market has been undergoing a dramatic shift towards greater institutional ownership. In this paper, we show that the increase in the stock ownership by institutions over time, especially those with focus on short-term performance, is positively related to...