Download or read book Have Analyst Forecast Properties Improved After Regulations written by Hassan Espahbodi and published by . This book was released on 2014 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: Violation of securities laws and corporate scandals led to the passage of Regulation Fair Disclosure and the Sarbanes-Oxley Act, and to the Global Analyst Research Settlement, in early 2000. These regulations were designed to protect investors by reducing analyst conflicts of interest and improving the quality of financial information. As such, these regulations were expected to improve analysts' earnings forecast. This paper examines the trend in accuracy and dispersion of analysts' earnings forecasts over the period 1994-2009 to determine if forecast properties improved following these regulations. Consistent with the evidence provided by many of the earlier studies, we do find that forecast accuracy and dispersion improved during the period immediately after these regulations. This finding supports the notion (although it does not prove) that these regulations achieved their objectives in the short run. However, univariate and multivariate tests over the longer period show that analyst forecast accuracy declined and forecast dispersion significantly increased in subsequent years. The results are robust to alternative measures of our dependent variables, specifications of pre- and post-regulation periods, and sample composition; and imply that these regulations did not collectively improve the information environment despite the reduction in analyst conflicts of interest. The continued problem with the information environment, therefore, seems to be largely due to the quality of financial reports. Also, the difference between short- and long-term results suggest that regulators need to weigh the cost of regulations against both their short- and long-term benefits.

Download or read book The Effects of Disclosure and Analyst Regulations on the Relevance of Analyst Characteristics for Explaining Analyst Forecast Accuracy written by Sami Keskek and published by . This book was released on 2017 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: We posit and find an effect of disclosure and analyst reporting regulations implemented from 2000 through 2003 (including Regulation Fair Disclosure, the Sarbanes-Oxley Act, and the Global Settlement Act) on the importance of analyst and forecast characteristics for analyst forecast accuracy. Following the enactment of these regulations, more experienced analysts and All-Star analysts do not maintain their superior forecast accuracy, and analysts employed by large brokerage houses perform worse than other analysts. In addition, we find a decrease in the importance of analyst effort, the number of industries and firms followed, days elapsed since the last forecast, and forecast horizon. While the importance of bold upward forecast revisions does not change, bold downward revisions lose their relevance for forecast accuracy after 2003. Finally, we find an increase in the important of prior forecast accuracy. We find that the importance of these characteristics varies with the precision of publicly available information. Specifically, the decrease in the importance of most analyst and forecast characteristics and the increase in the importance of prior forecast accuracy are greater when the precision of publicly available information is low. Overall, our results suggest that the positive effects of experience, effort, brokerage house size, and All-Star status on forecast accuracy in the pre-regulation period were because of the information advantages that these analysts enjoyed (rather than their ability to generate private information). In contrast, our results suggest that prior forecast accuracy is related to analysts' ability to generate private information.

Download or read book Did Analyst Forecast Accuracy and Dispersion Improve After 2002 Following the Increase in Regulation written by Hassan Espahbodi and published by . This book was released on 2015 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This article examines the accuracy and dispersion of analyst earnings forecasts from October 1993 to September 2013. The authors found an improvement in these forecast properties in the short run following various regulations in the early 2000s. Over the extended period, however, forecast accuracy significantly declined and dispersion significantly increased. The results are robust to various sensitivity tests and indicate that these regulations did not collectively improve the information environment despite the reduction in analyst conflicts of interest. The problem seems to be largely due to the quality of financial reports.

Download or read book The Change in Financial Analysts Forecast Attributes for Value and Growth Stocks written by Pieter Johannes De Jong and published by ProQuest. This book was released on 2007 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This research will concentrate on the changes in earnings forecasts, forecast accuracy and forecast dispersion for growth and value stocks after Reg FD. Each topic is presented in a separate essay. The first essay tests if growth and value stock returns respond more to forecasted earnings changes than they do to changes in earnings and whether these stock returns respond in a different fashion before and after Reg FD. This phenomenon is stronger for growth stock portfolio strategies than it is for value stock portfolios. After Reg FD, the overall impact of earnings expectations on stock returns is smaller, especially for growth stock returns. The second essay examines financial analysts' earnings forecast accuracy in value and growth stocks before and after the introduction of Reg FD. Accuracy for both stock groups (value and growth stocks) has improved after the introduction of Reg FD. The results in this essay provide additional evidence indicating that analysts did not just misinterpret available news but consciously tried to maintain relationships with managers. However, Reg FD efficiently limited these relationships between managers of growth firms and analysts so that the monetary advantage from manipulating earnings forecasts before the introduction of Reg FD no longer exists. The third essay evaluates the hypothesis stating that forecast dispersion, on both growth and value stock returns, has increased after the introduction Reg FD. However, the increased dispersion found at the second quarter of 2001 drastically dissipates at the second quarter of 2002, although value stock forecast dispersion before earnings announcement and value stock belief jumbling remain higher. The results in this essay suggest that corporate voluntary disclosure created a greater variety of opinions and, therefore, more uncertainty about value stocks. Also, value stock returns have a stronger inverse relationship with dispersion because financial analysts have become more uncertain about value firms' performance. The bigger the disagreement about a stock's value, the higher the market price relative to the true value of the stock, and the lower its future return.

Download or read book The Effect of a Change in Analyst Composition on Analyst Forecast Accuracy written by John Nowland and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Prior research has shown improvements in analysts' forecast accuracy around various events (e.g. new disclosure regulations or cross-listings), but these studies do not consider a change in the composition and ability of analysts providing forecasts over time. By studying foreign firms cross-listing on U.S. stock exchanges, we find that analyst composition changes by over 50 percent during the three-year period around cross-listing. We show that cross-listing is associated with a shift away from analysts who are less accurate forecasters and toward analysts who are more accurate forecasters. This shift in analyst composition accounts for a significant improvement of 9.5 percent in analyst forecast accuracy. In addition, we document that changes in both analyst ability and public information disclosure affect analyst forecast accuracy around cross-listing. Our results indicate that researchers should control for changes in analyst composition and ability when measuring the impact of specific events on analyst forecast accuracy.

Download or read book Determinants of Earnings Forecast Error Earnings Forecast Revision and Earnings Forecast Accuracy written by Sebastian Gell and published by Springer Science & Business Media. This book was released on 2012-03-26 with total page 144 pages. Available in PDF, EPUB and Kindle. Book excerpt: ​Earnings forecasts are ubiquitous in today’s financial markets. They are essential indicators of future firm performance and a starting point for firm valuation. Extremely inaccurate and overoptimistic forecasts during the most recent financial crisis have raised serious doubts regarding the reliability of such forecasts. This thesis therefore investigates new determinants of forecast errors and accuracy. In addition, new determinants of forecast revisions are examined. More specifically, the thesis answers the following questions: 1) How do analyst incentives lead to forecast errors? 2) How do changes in analyst incentives lead to forecast revisions?, and 3) What factors drive differences in forecast accuracy?

Download or read book Federal Aviation Regulations written by United States. Federal Aviation Administration and published by . This book was released on 1995 with total page 1636 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Code of Federal Regulations written by and published by . This book was released on 1982 with total page 472 pages. Available in PDF, EPUB and Kindle. Book excerpt: Special edition of the Federal Register, containing a codification of documents of general applicability and future effect ... with ancillaries.

Download or read book The Code of Federal Regulations of the United States of America written by and published by . This book was released on 1984 with total page 518 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Code of Federal Regulations is the codification of the general and permanent rules published in the Federal Register by the executive departments and agencies of the Federal Government.

Download or read book Electric Utility Rate Reform and Regulatory Improvement written by United States. Congress. House. Committee on Interstate and Foreign Commerce. Subcommittee on Energy and Power and published by . This book was released on 1976 with total page 1156 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Laws of the State of New York written by New York (State) and published by . This book was released on with total page 1286 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Regulatory Program of the United States Government written by United States. Office of Management and Budget and published by . This book was released on 1987 with total page 732 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Implementation of Title XI the Appraisal Reform Amendments of the Financial Institutions Reform Recovery and Enforcement Act of 1989 FIRREA written by United States. Congress. House. Committee on Government Operations. Commerce, Consumer, and Monetary Affairs Subcommittee and published by . This book was released on 1990 with total page 484 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Relationship between Analyst Forecast Properties and Equity Bid Ask Spreads and Depths Around Quarterly Earnings Announcements written by Kiridaran (Giri) Kanagaretnam and published by . This book was released on 2017 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the relationships between three variables which proxy for the ex-ante level of information asymmetry - forecast dispersion, forecast revision volatility, and the level of analyst coverage, and equity bid-ask spread and depth changes around quarterly earnings releases. Kim and Verrecchia, 1994 suggest that earnings releases increase the level of information asymmetry and lower the level of liquidity in the security market. Using both an OLS regression framework and a simultaneous equations model, we examine whether equity bid-ask spreads increase and depths decrease as the level of information asymmetry increases. Our results indicate that spreads are higher (relative to a non-event period) around earnings announcements when information asymmetry is more pronounced; however, depths are lower only on the day following the announcement when there is greater information asymmetry. Relative spreads have a significant positive relation with both forecast dispersion and revision volatility and a significant negative relation with analyst coverage. Relative depths have a significant negative relation with forecast dispersion and a significant positive relation with analyst coverage. Our findings indicate that the equity specialist adjusts both spreads and depths when confronting informed traders around earnings releases and that these adjustments are more pronounced when the level of information asymmetry is greater.

Download or read book Engineering Management written by A K Gupta and published by S. Chand Publishing. This book was released on 2014-10 with total page 472 pages. Available in PDF, EPUB and Kindle. Book excerpt: Suitable for engineering and management courses, this book intends to develop an understanding of the basic management concepts required in different engineering disciplines, and meets the specific requirements of students pursuing B Tech/M Tech courses and MBA, Post graduate Diploma in Management/Engineering Management.

Download or read book Energy Research Abstracts written by and published by . This book was released on 1989 with total page 420 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Texas Real Estate License Exam Prep written by Stephen Mettling and published by Performance Programs Company. This book was released on 2024-10-12 with total page 311 pages. Available in PDF, EPUB and Kindle. Book excerpt: Features of Performance Programs Company's Texas Real Estate License Exam Prep (TX-RELEP): National Principles & Law Key Point Review (60 pages) Real Estate Math Key Formula Review & Practice (17 pages) Texas-Specific Laws and Practices (42 pages) National Practice Tests (500 questions) Texas Practice Tests (125 questions) Texas Sample Exam (100 questions) We know the real estate licensing exam can be tough, and very nerve-wracking to prepare for. That’s why we created the Texas Real Estate License Exam Prep (TX-RELEP) the way we did. Since we have been managing real estate schools and developing curriculum for forty years, we know how all this works – or fails to work. TX-RELEP is comprehensive in that it contains both key content review and testing practice. And the text review is Texas-specific – not just simplistic national content, but terse, relevant and accurate Texas laws and regulations presented as a well-organized set of state ‘key point reviews’ ideal for pre-test memorization. But let’s not dismiss the importance of the national content either. TX-RELEP’s national key point reviews are a succinct compression of tested national principles and practices that comprise the national portion of state license exams from coast to coast. Our content is drawn from our own national textbook, Principles of Real Estate Practice – one of the most widely used principles textbooks in the country. Finally, our national content, as well as our question selection, is further tailored to the state testing outline promulgated by Pearson Vue for Texas. Thus the breadth and depth of the law reviews and test questions reflect the topic emphasis of your state’s testing service and your Texas license exam. A word about the test questions… TX-RELEP’s testing practice section consists of ten national practice tests, six state practice tests, and one state exam sample test. The practice tests are roughly 50 questions in length and the sample test is 100 questions. The test questions are designed to cover the content covered by the law reviews – which reinforces your learning of the total body of information tested by your Texas exam. The questions are direct, to the point, and designed to test your understanding. When you have completed a given test, you can check your answers against the answer key in the appendix. You may also note that each question’s answer is accompanied by a brief explanation, or “rationale” to further reinforce your understanding. In the end, as you know, it’s all up to you. Unlike other publications, we are not going to tell you that using this book will guarantee that you pass your state exam. It still takes hard work and study to pass. But we have done our best here to get you ready. Following that, the most we can do is wish you the best of success in taking and passing your Texas real estate exam. So good luck!! For students looking for a more comprehensive Texas Principles I & II textbook, we publish Principles of Real Estate Practice in Texas.