Download or read book Effects of Increased Reporting Frequency on Accuracy Dispersion and Confidence Intervals of Nonprofessional Investors Earnings Predictions written by Terence Jude Pitre and published by . This book was released on 2004 with total page 158 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Effects of Increased Reporting Frequency on Nonprofessional Investors Earnings Predictions written by Terence Pitre and published by . This book was released on 2007 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: More frequent reporting has been a debated topic for several years. However, little is known about the possible effects of more frequent reporting on investors' decision making. Using a between-subjects experiment, I analyze how the frequency of reporting - weekly earnings, as opposed to quarterly earnings - affects the accuracy, dispersion and confidence intervals of earnings predictions by nonprofessional investors. I hypothesize and find that more frequent reporting results in less accurate predictions and larger dispersion of predictions for earnings with a strong seasonal pattern. I also hypothesize, but do not find support, that more frequent reporting significantly increases confidence interval widths among nonprofessional investors. Results indicate that investors in the more frequent reporting condition were overconfident despite their less accurate predictions than those in the less frequent reporting condition.
Download or read book Reporting Frequency and Sample Size written by Terence Pitre and published by . This book was released on 2007 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: There has been little research that has examined any of the possible consequences of frequent financial reporting. Using a between subjects experiment, I examine one possible consequence of frequent financial reporting - increased sample size of data - and its' effect on nonprofessional investors uncertainty (as measured by confidence intervals and confidence levels) and predictions. I report three principle findings of my experiment. (1) Confidence intervals increase with larger sample sizes rather than decrease as statistical theory suggest. (2) Confidence levels are unaffected by sample size when it is not salient to the investor as being important for accuracy. (3) Estimates generated from larger sample sizes are nearer to the sample mean and significantly different from those from smaller samples, also contradicting statistical theory.
Download or read book The Impact of Discretionary Segment Reporting Behavior on Investor Beliefs and Stock Prices written by Joseph David Piotroski and published by . This book was released on 1999 with total page 290 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Dissertation Abstracts International written by and published by . This book was released on 2005 with total page 582 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Is There Safety in Numbers The Effects of Forecast Accuracy and Forecast Boldness on Financial Analysts Credibility with Investors written by Kathryn Kadous and published by . This book was released on 2009 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reports the results of an experiment that examines how analyst forecast accuracy (i.e., how close an analyst's forecast is to realized earnings) and forecast boldness (i.e. how far the analyst's forecast is from the consensus forecast) affect the analyst's perceived credibility and investors' willingness to rely on and purchase the analyst's future reports. We hypothesize and find that forecast boldness magnifies the effect of forecast accuracy on these variables. That is, analysts who provide accurate, bold forecasts experience more positive consequences than those who provide accurate, non-bold forecasts, and analysts who provide inaccurate, bold forecasts experience more negative consequences than those who provide inaccurate, non-bold forecasts. We also find that these effects are not symmetric - the negative consequences of being bold and inaccurate exceed positive consequences of being bold and accurate. Our results are not sensitive to the level of the analyst's prior reputation.
Download or read book Effects of Redundancy in Media Coverage on Nonprofessional Investors Earnings Forecasts written by J. Arthur Hugon and published by . This book was released on 2004 with total page 326 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Effect of Reporting Frequency on the Timeliness of Earnings written by Marty Butler and published by . This book was released on 2007 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine whether financial reporting frequency affects the speed with which accounting information is reflected in security prices. For a sample of 28,824 reporting-frequency observations from 1950 to 1973, we find little evidence of differences in timeliness between firms reporting quarterly and those reporting semiannually, even after controlling for self-selection. However, firms that voluntarily increased reporting frequency from semiannual to quarterly experienced increased timeliness, while firms whose increase was mandated by the SEC did not. We conclude that there is little evidence to support the claim that regulation forcing firms to report more frequently improves earnings timeliness.
Download or read book Performance and Perception written by Anita Reed and published by . This book was released on 2009 with total page 163 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Stock Price Effects of Changes in Dispersion of Investor Beliefs during Earnings Announcements written by Lynn L. Rees and published by . This book was released on 2008 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: Existing research provides competing theories as to how dispersion of investor beliefs might affect stock prices. We measure changes in dispersion of investor beliefs around earnings announcements using changes in the dispersion of individual analysts' forecasts. We find that the three-day market response to earnings announcements is negatively associated with changes in dispersion, consistent with the cost of capital hypothesis. The results hold after controlling for the current earnings surprise, forecast revisions of future earnings, and reported earnings relative to various earnings thresholds. Our study provides new insight about the information contained within earnings announcements that is incremental to the magnitude and timing of cash flows.
Download or read book The Dark Side of Low Financial Reporting Frequency written by Salman Arif and published by . This book was released on 2019 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines how low financial reporting frequency affects investors' reliance on alternative sources of earnings information. We find that the returns of semi-annual earnings announcers (i.e. low reporting frequency stocks, “LRF”) are almost twice as sensitive to the earnings announcement returns of US industry bellwether peers for non-reporting periods compared to reporting periods. Strikingly, these heightened spillovers are followed by return reversals when investors finally observe own-firm earnings at the subsequent semi-annual earnings announcement. This indicates that investors periodically overreact to peer-firm earnings news in the absence of own-firm earnings disclosures in interim periods. We also find elevated price volatility and trading volume around earnings announcements for non-reporting periods, consistent with theories of investor overconfidence. Collectively, our results suggest that investors are unable to successfully offset the information loss arising from low reporting frequency, thus impairing their ability to value firms and adversely affecting the quality of financial markets.
Download or read book Which Matters Accuracy or Boldness Analysts Earnings Forecast and Institutional Holdings written by Min-Hsien Chiang and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper aims to investigate the effect of financial analysts' earnings forecast on the institutional trading. In specific, we address three issues regarding the effect of financial analysts earnings forecast on the institutional holdings: (1) Do institutional investors pay more attention and more sensitive to analyst earnings forecast with higher forecast accuracy? (2) Do institutional investors prefer analysts with higher accuracy on earnings forecast? (3) Do institutional investors prefer analysts with bold attitude toward earnings forecast? Firstly, our empirical results show that institutional investors do pay attention to the accuracy of financial analysts earnings forecast. That is, firms with higher accuracy of analysts' earnings forecast tend to attract more institutional investors' attention and thus higher institutional holdings. Secondly, our results evidence that institutional investors prefer analysts with higher accuracy in their earnings forecast. That means institutional investors tend to follow more closely those analysts whose earnings forecasts are more accurate. Finally, we find that institutional investors in general are indifferent to the boldness of analysts earnings forecast. However, institutional investors will pay more attention and follow more closely those analysts whose earnings forecasts are not only accurate but also close to the consensus.
Download or read book Financial Analysts Earnings Forecast Dispersion and Intraday Stock Price Variability Around Quarterly Earnings Announcements written by Samuel S. Tung and published by . This book was released on 2020 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates the relationship between the dispersion of analysts? earnings forecasts and stock price variability around quarterly earnings announcements. Consistent with theoretical predictions, the empirical analysis shows that stock price variability at the time of earnings announcements is positively related to the degree of analysts? earnings forecast dispersion. The analysis also demonstrates that stock price variability is significantly greater from two days before to two days after the earnings announcement for firms ranked in the bottom third on the basis of analysts? forecast dispersion, whereas it is significantly greater from eight days prior to five days following the earnings announcement for firms in the top third. These results suggest that there is information about the earnings announcement that becomes available to at least a subset of investors prior to the earnings release. The increased level of price variability for five days following the earnings announcement suggests that market participants take different amounts of time to process the information conveyed by the earnings announcement.
Download or read book Financial Analysts Earnings Forecast Dispersion and Intraday Stock Price Variability Around Quarterly Earnings Announcements written by Gerald J. Lobo and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates the relationship between the dispersion of analysts' earnings forecasts and stock price variability around quarterly earnings announcements. Consistent with theoretical predictions, the empirical analysis shows that stock price variability at the time of earnings announcements is positively related to the degree of analysts' earnings forecast dispersion. The analysis also demonstrates that stock price variability is significantly greater from two days before to two days after the earnings announcement for firms ranked in the bottom third on the basis of analysts' forecast dispersion, whereas it is significantly greater from eight days prior to five days following the earnings announcement for firms in the top third. These results suggest that there is information about the earnings announcement that becomes available to at least a subset of investors prior to the earnings release. The increased level of price variability for five days following the earnings announcement suggests that market participants take different amounts of time to process the information conveyed by the earnings announcement.
Download or read book Discontinuity in Earnings Distributions written by Wei Li and published by . This book was released on 2015 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents a model of financial reporting in which investors infer both pre-managed earnings and the precision of earnings from reported earnings. Over-reporting earnings has two opposing pricing effects: investors infer higher pre-managed earnings from an inflated positive earnings surprise (i.e., positive effect); however, investors also infer a lower earnings precision, leading to a lower pricing weight placed on the higher surprise (i.e., negative effect). For firms with strongly positively autocorrelated earnings, the trade-off between the two opposing effects creates a pooled report right above the prior mean of the earnings distribution and a no-reporting quot;holequot; right below the prior mean in equilibrium (i.e., an earnings discontinuity consistent with empirical findings). The model also predicts: (1) no earnings discontinuity exists for firms with negatively or weakly positively autocorrelated earnings, and (2) the earnings discontinuity is more pronounced for firms with more positively autocorrelated earnings. The empirical evidence supports the two predictions.
Download or read book Sophisticated and Unsophisticated Investors Reactions to Analysts Forecast Revisions Conditional on Factors that are Associated with Forecast Accuracy written by Sarah E. Bonner and published by . This book was released on 2001 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this study we examine differences between sophisticated and unsophisticated investors' incorporation of information about the accuracy of sell-side analysts' revisions of quarterly earnings forecasts. Our results indicate that sophisticated investors' weights on information cues associated with accuracy more closely match the weights derived from environmental models of forecast accuracy. Further, our findings suggest that sophisticated investors' strategies better reflect the costs and benefits of using accuracy cues that provide statistically significant, but economically small, explanatory power for forecast accuracy. Our evidence is consistent with sophisticated investors having greater knowledge about the factors that are related to forecast accuracy and exhibiting more adaptive cue-weighting strategies.
Download or read book Analysts Reputational Concerns Self Censoring and the International Dispersion Effect written by Chuan-Yang Hwang and published by . This book was released on 2017 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: Stocks with higher forecast dispersion earn lower future returns and have a greater upward bias in the mean reported earnings forecast in the international markets. Both phenomena are stronger in countries with more transparent information environments, more developed stock markets, stronger investor protection, greater capital openness, and more intense usage of analysts' earnings forecasts. Using the 1997-98 Asian financial crisis as a natural experiment, we find that both phenomena become weaker post crisis in Malaysia, which imposed capital controls, relative to Thailand and South Korea, which opened up their financial markets to foreigners. These results suggest that analysts in countries with greater demand for their forecasts and hence greater concerns for reputations are more likely to self-censor their low forecasts, which leads to a stronger dispersion-bias relation and a stronger dispersion effect.
