before the actual earnings announcement. The second one is the optimistic bias channel. The optimistic bias channel means … that the stock is overpriced if the investors do not correct the analysts' bias. The self-selection is negatively … correlated with the stock return through the optimistic bias channel as more self-selection means more optimistic bias as low …

' earnings forecasts. We show that measures of prior consensus and individual analyst forecast pessimism are predictive of both … with a relatively high probability of forecast pessimism experience significantly higher announcement returns than those … difficulty investors have in identifying differences in expected forecast pessimism. Overall, we conclude that market prices do …

We propose a novel method to forecast corporate earnings, which combines the accuracy of analysts' forecasts with the … their long-term performance. Our model outperforms the most popular methods from the literature in terms of forecast … accuracy, bias, and earnings response coefficient. Furthermore, using our estimates in the implied cost of capital calculation …

controls for the forecast error throughout the quarter. Results show that during high macro uncertainty periods, the market …

-growth conglomerates with manipulation earn significant alpha of -11% per-annum when accompanied by pessimistic analysts forecast revisions …

regarding rating accuracy and rating theory. The implications of the results for equity valuation are discussed. …

forecasts is found to be correlated with indicators of bias in a manner consistent with investors discounting optimistic …