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...

Prior studies attribute the future excess return patterns of R&D firms to either compensation for increased risk from R&D or to mispricing by investors. We suggest a third explanation for the future excess returns of R&D firms. We show that neither the level of R&D investment nor the change in...

This study investigates whether analysts strategically construct their portfolios along the supply chain. We document four major findings. First, the likelihood of an analyst following a firm's major customer increases with the strength of the economic tie along the supply chain, as measured by...

Security analysts are often considered experts in the industries they follow. We analyze the impact of such expertise on market prices and returns in a setting where firms' earnings components may differ in their levels of persistence over time. In this context we show that a firm's...

We first examine whether analysts with certain characteristics that prior research has identified are related to superior forecasting ability systematically time their forecast revisions later in the fiscal quarter. We then examine whether this superior ability persists after controlling for...

Purpose: The purpose of this paper is to examine analysts' earnings forecasts during a period of heightened uncertainty and forecasting complexity, that of a forced change of CEO. How well do analysts utilise their information advantage to reduce information uncertainty between management and...

We investigate whether the adoption of IFRS in 2005 by Australian firms has been associated with a loss of potentially useful information about intangible assets, as conjectured by Matolcsy and Wyatt (2006). We find that the negative association between analyst forecast error...

Recent literature suggests that other information included with management earnings forecasts may not be useful to the market as a direct disclosure. I use regression analysis to investigate whether this type of disclosure can help analysts to formulate more accurate forecasts of earnings....

This paper examines the effect of the mandatory adoption of International Financial Reporting Standards (IFRS) by the European Union on financial analysts' information environment. To control for the effect of confounding concurrent events, we use a control sample of firms that had already...