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accurate earnings forecasts than individual analysts and that the stock market reacts more strongly to forecast revisions … show that team size and team member ability are significantly associated with forecast accuracy. Moreover, using detailed … analyst background information from LinkedIn, we find that forecast accuracy is positively associated with team diversity …
Persistent link: https://www.econbiz.de/10012052460
available forecast for each forecaster and the difference between the average and the forecast that this forecaster previously … made. We extended the knowledge base by analyzing the unpredictable component of the earnings forecast. We found that for … some forecasters the unpredictable component can be used to improve upon the predictable forecast, but we also found that …
Persistent link: https://www.econbiz.de/10011895745
unusually optimistic earnings forecast at the end of the year that increases the likelihood of an earnings miss. We first … difficult-to-beat forecast as a final earnings forecast prior to the earnings announcement that exceeds even the most optimistic … forecast issued by any other analyst covering the stock. We find that 11% of all firm-year observations are subject to at least …
Persistent link: https://www.econbiz.de/10013492681
The range of non-EPS forecast types provided by individual analysts to I/B/E/S has increased dramatically over time but … varies considerably across firms. We propose that in providing a broader range of forecast types analysts can signal superior … forecast types (NFT) an analyst provides and common proxies for research quality including earnings forecast accuracy, price …
Persistent link: https://www.econbiz.de/10014353865
mechanism explains approximately 60% of the autocorrelation in analysts' forecast errors. The remainder stems from the cross …-sectional variation in mean forecast errors and in analysts' estimation errors of the persistence of earnings growth shocks. Consistent … reduces, but does not eliminate, the auto- correlation of forecast errors as firms age. Other potential explanations for the …
Persistent link: https://www.econbiz.de/10013039156
is a cost-saving measure, a natural byproduct of analysts focusing on thematic research, and a reflection of forecast … forecast bundling has important implications for the properties of analysts' forecasts …
Persistent link: https://www.econbiz.de/10012902228
We document that analysts cater to short-term investors by issuing optimistic target prices. Catering dominates among analysts at brokers without an investment banking arm as they face lower reputational cost. The market does not see through the analyst catering activity and their forecasts lead...
Persistent link: https://www.econbiz.de/10012937400
reaction is stronger when Chinese analysts issue favorable forecast revisions or upgrades about Chinese firms …
Persistent link: https://www.econbiz.de/10012938549
This article shows that aggregate analyst recommendations predict future aggregate excess returns at MSA and state level (i.e. local level). The results hold even after controlling for macroeconomic variables, industry and market returns, as well as investor sentiment. We also show that the...
Persistent link: https://www.econbiz.de/10012943568
This paper focuses on the investment value of information contained in the tails of the analyst forecast distribution …
Persistent link: https://www.econbiz.de/10013008332