An analysis of about 300000 earnings forecasts, created by 18000 individual forecasters for earnings of over 300 S&P listed firms, shows that these forecasts are predictable to a large extent using a statistical model that includes publicly available information. When we focus on the...

Analysts often update their recommendations following corporate news. Questions have been raised regarding analysts' ability to generate new information beyond recent corporate events. Employing a comprehensive database on corporate news we show that only a small minority of 27.9% of all...

Earnings management at the time of the IPO is an important issue and has captured considerable attention of academic literatures. However, there have been few studies testing earnings management in the context of market condition, and when financial intermediaries such as venture capital (VC)...

Burgstahler and Eames (2003) present evidence that analysts commonly anticipate earnings management to avoid small losses, but often incorrectly predict its occurrence. Here we consider whether the market's behavior mimics that of analysts. Our results suggest that analysts exhibit more forecast...

This study examines the relationship between the value of financial analysts' recommendations and the intensity of firms' research and development (R&D) expenditures. We conduct univariate, portfolio and regression analyses using a sample of 8,620 public firms for the period 1993-2004. The...

This paper studies the effect of investor sentiment on stock returns in three Central European markets: the Czech Republic, Hungary and Poland. The results show that sentiment is a key variable in the prices of stocks traded on these markets and its impact is stronger here than in more developed...

Information flows are of critical importance for IPO pricing. We posit that individual investment bankers use personal social capital to address information problems during IPOs. Using a unique database of mutual fund bids in the Chinese IPO market, we find that when an investment banker has a...

We aim to perform a comprehensive analysis of the effects of stock ratings and target prices published in the Japanese markets using a large number of analyst reports. Our study is the first to cover reports published by six domestic brokerage firms and ten foreign brokerage firms. In addition...

The JOBS Act allows certain analysts to be more involved in the IPO process, but does not relax restrictions on analyst compensation structure. We find that these analysts initiate coverage that is more optimistically biased, less accurate, and generates smaller stock market reactions. Investors...

I utilize the recursive partitioning method to extract analysts' weight of forecasts assigned in their stock recommendation decisions. My findings suggest that in addition to analysts' earnings forecasts, the non-earnings forecasts, such as sales forecasts and net income forecasts, also play an...