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Book Information content of analysts composite forecast revisions

Download or read book Information content of analysts composite forecast revisions written by Eugene A. Imhoff, Jr. and Gerald J. Lobo and published by . This book was released on 1983 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Book Revisions of Earnings Forecasts and Security Returns

Download or read book Revisions of Earnings Forecasts and Security Returns written by John Capstaff and published by . This book was released on 2001 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: Prior evidence has demonstrated that for North American markets EPS forecast revisions are associated with security price changes, although this evidence is much stronger for pre-announcement changes than for post-announcement. As there is considerable interest in using analysts' forecasts for stock selection purposes in Europe, it is clearly of some importance to determine whether forecast revisions are associated with security returns, and whether the revisions can be used to trade successfully. We use a large sample of individual analysts' forecast revisions in Europe's three largest markets - the U.K., France and Germany ? and demonstrate that forecast revisions follow significant abnormal returns and can also be used to identify significant, post announcement returns. This result is found in all years bar one, is stronger for the U.K. than the other markets, for downward than for upward revisions, for less researched rather than more researched firms and for forecasts diverging from the consensus rather than converging. Although surprisingly strong evidence against the EMH these results are consistent with certain other studies which also demonstrate delayed market reaction to news.

Book Market Response to Revisions in Analysts Future Years Earnings Forecasts

Download or read book Market Response to Revisions in Analysts Future Years Earnings Forecasts written by Gregory Alan Sommers and published by . This book was released on 2002 with total page 194 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: Questions have been raised in the business press and prior academic research about future years' earnings forecast credibility, particularly long-term growth. This paper documents the market response to revisions in analysts' earnings forecasts for the next year and long-term growth (collectively "future years' earnings"). First, I show there is information content in future years' earnings forecast revisions as evidenced by changes in return volatility and volume at their release. Second, there is a direct market response to the magnitudes of the revisions in the next years' earnings forecasts and to upward revisions in long-term growth forecasts as evidenced by the coefficient relating the unexpected returns to the unexpected portion of the revisions. Finally, I find that investors use the next year earnings forecasts interpret the expected persistence of current year earnings forecast revisions. This is evidenced by increases (decreases) in the coefficient relating unexpected returns to the current year earnings forecast revisions when the next year earnings forecast revision is in the same (opposite) direction. This study documents market response to future years' earnings forecast revisions and indicates that they affect how investors respond to the revisions in current year earnings forecasts.

Book The Impact of the Global Settlement

Download or read book The Impact of the Global Settlement written by United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs and published by . This book was released on 2004 with total page 136 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Book Investor Reaction to Celebrity Analysts

Download or read book Investor Reaction to Celebrity Analysts written by Sarah E. Bonner and published by . This book was released on 2011 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the effects of analysts' celebrity on investor reaction to earnings forecast revisions. We measure celebrity as the quantity of media coverage analysts receive in sources included in the Dow Jones Interactive database, and find that media coverage is positively related to investor reaction to forecast revisions. The effect of celebrity on the reaction to forecast revisions remains significant after controlling for forecast performance variables examined in prior studies (ex post forecast accuracy, ex ante accuracy, award status, and other variables shown to be related to forecast accuracy). While these results are consistent with the familiarity of the analyst's name affecting the market reaction, we cannot rule out that our measure of celebrity is correlated with error in the performance measures we examine and/or correlated with other unexamined dimensions of forecast performance. A content analysis of a random subsample of the media coverage of our sample analysts suggests that our findings likely are not due to the increased availability of forecast revisions. Finally, an investigation of the excess returns around the quarterly earnings announcement date suggests that market participants react too strongly to forecast revisions issued by analysts with high levels of media coverage. Taken together, these findings suggest that an analyst's level of media coverage can affect the initial market reaction to his forecast revisions.

Book The Market Reaction to Stock Split Announcements

Download or read book The Market Reaction to Stock Split Announcements written by Alon Kalay and published by . This book was released on 2014 with total page 39 pages. Available in PDF, EPUB and Kindle. Book excerpt: We re-examine whether the abnormal returns around stock split announcements can be explained by an information hypothesis. Our evidence establishes a link between the abnormal returns and future earnings growth. Analysts revise earnings forecasts by 2.2-2.5% around split announcements, and this revision is significantly larger than that for matched firms. We further show that the earnings information in a split likely arises from the fact that splitting firms experience less mean reversion in their earnings growth relative to matched firms. Consistent with an earnings information hypothesis, the analyst revision and the abnormal returns are stronger for firms with more opaque information environments, and the cross-sectional variation in analyst revisions is related to the variation in abnormal returns.

Book An Empirical Evaluation of the Relationship Between Errors in Analysts Forecasts of Earnings Per Share and Stock Prices

Download or read book An Empirical Evaluation of the Relationship Between Errors in Analysts Forecasts of Earnings Per Share and Stock Prices written by Paul A. Janell and published by . This book was released on 1974 with total page 354 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Book Returns to Informational Advantages

Download or read book Returns to Informational Advantages written by A. Rashad Abdel-Khalik and published by . This book was released on 2014 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper evaluates whether the primary and secondary dissemination of earnings forecast revisions by security analysts is reflected in security prices. Security prices were used to determine the profitability (before the cost of search) of trading strategies based on the nonpublic knowledge of forecast revisions. For a sample of 288 weekly earnings forecast revisions, the results were consistent with the hypothesis that early knowledge of forecast revisions could be used to form profitable trading strategies. Furthermore, the secondary dissemination of forecasts continued to have information content at the point of disclosure. These results are inconsistent with the strong form, but consistent with the semi-strong form, of market efficiency. Furthermore, the information contemporaneously available from public sources did not generate equivalently profitable trading rules, indicating that forecast revisions were not deducible from other publicly available information. Finally, some general public policy implications concerning mandatory disclosure of forecasts were drawn.

Book Information Content of Sales and Earnings Forecast Revisions

Download or read book Information Content of Sales and Earnings Forecast Revisions written by Eugene A. Imhoff and published by . This book was released on 1985 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Book Bold Security Analysts Earnings Forecasts and Managers Information Flow

Download or read book Bold Security Analysts Earnings Forecasts and Managers Information Flow written by Allen Huang and published by . This book was released on 2012 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the relation between security analysts' annual earnings forecast boldness ("bold analysts") and changes in the inferred flow of earnings-related information from managers of the forecasted firm to bold analysts. We find that unfavorably bold analysts experience an improvement in their subsequent relative forecast accuracy. Favorable forecasters, however, experience a decrease in subsequent relative forecast accuracy. Our forecast revisions tests suggest that the market recognizes the improvement in subsequent relative forecast accuracy for unfavorably bold analysts and places no additional weight on forecast revisions from favorably bold analysts.

Book Market Reaction to Earnings Forecast Revisions

Download or read book Market Reaction to Earnings Forecast Revisions written by Feng Li and published by . This book was released on 2003 with total page 284 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Book Dissertation Abstracts International

Download or read book Dissertation Abstracts International written by and published by . This book was released on 1996 with total page 588 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Book Financial Gatekeepers

Download or read book Financial Gatekeepers written by Yasuyuki Fuchita and published by Brookings Institution Press. This book was released on 2007-02-01 with total page 216 pages. Available in PDF, EPUB and Kindle. Book excerpt: A Brookings Institution Press and Nomura Institute of Capital Markets Research publication Developed country capital markets have devised a set of institutions and actors to help provide investors with timely and accurate information they need to make informed investment decisions. These actors have become known as "financial gatekeepers" and include auditors, financial analysts, and credit rating agencies. Corporate financial reporting scandals in the United States and elsewhere in recent years, however, have called into question the sufficiency of the legal framework governing these gatekeepers. Policymakers have since responded by imposing a series of new obligations, restrictions, and punishments—all with the purpose of strengthening investor confidence in these important actors. Financial Gatekeepers provides an in-depth look at these new frameworks, especially in the United States and Japan. How have they worked? Are further refinements appropriate? These are among the questions addressed in this timely and important volume. Contributors include Leslie Boni (University of New Mexico), Barry Bosworth (Brookings Institution), Tomoo Inoue (Seikei University), Zoe-Vonna Palmrose (University of Southern California), Frank Partnoy (University of San Diego School of Law), George Perry (Brookings Institution), Justin Pettit (UBS), Paul Stevens (Investment Company Institute), Peter Wallison (American Enterprise Institute).