Prominent properties of distributions of differences in earnings reported by forecast data providers (FDPs), i.e., I/B/E/S, Zacks, and First Call, and Compustat drive statistical inferences drawn in extant research concerning the relative information content and value relevance of alternative...

We investigate whether the direction and magnitude of earnings management by a firm is affected by analysts' current perception of its equity investment potential (i.e., its perceived ability to generate positive abnormal returns). We argue that firms whose investment potential is perceived to...

This paper tests whether the US stock market is myopic, in the sense that it places less than the appropriate weight on expected long-run earnings. The tests are made possible through reliance on a valuation model used by Ohlson [1995] that permits us, using only minimal assumptions, to make...

The extensive literature that investigates whether analysts' earnings forecasts are biased and/or inefficient has produced a history of conflicting evidence and no definitive answers to either question. This paper shows how two relatively small but statistically influential asymmetries in the...

In this paper we present evidence that a firm's stock price sensitivity to earnings news, as measured by outstanding stock recommendation, affects its incentives to manage earnings and, in turn, affects analysts' ex post forecast errors. In particular, we find a tendency for firms rated a Sell...

We test whether the US stock market is myopic in the sense of overvaluing short term earnings and undervaluing long term earnings (see, e.g., Porter [1992;1993]. Our tests rely on an accounting-based valuation model that generates predictions about how prices should relate to expected future...

We study the use of properties of analysts' forecasts as surrogates for unobservable constructs in empirical research. We provide an analytical framework with which to examine past empirical practice and contemplate future empirical research. Our model is used to interpret existing empirical...