Line Of Business Reporting The Marginal Information Content Of Earnings Announcements And The Accuracy Of Analyst Earnings Forecasts
Download Line Of Business Reporting The Marginal Information Content Of Earnings Announcements And The Accuracy Of Analyst Earnings Forecasts full books in PDF, epub, and Kindle. Read online free Line Of Business Reporting The Marginal Information Content Of Earnings Announcements And The Accuracy Of Analyst Earnings Forecasts ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
Do Information Releases Increase Or Decrease Information Asymmetry? New Evidence from Analyst Forecast Announcements
Author | : Dan Amiram |
Publisher | : |
Total Pages | : 46 |
Release | : 2016 |
Genre | : |
ISBN | : |
We use analyst earnings forecasts as a setting to examine a fundamental question concerning the effect of a public information release on announcement-period information asymmetry. Prior literature documents an announcement-period increase in information asymmetry for earnings announcements and management forecasts. In contrast, we predict and document an announcement-period decrease in information asymmetry for analyst forecasts. This decrease in information asymmetry at announcement is more pronounced when forecasts have greater information content. Predictably, there is a longer-term decrease in information asymmetry after all three information release types. Although the directionally opposite effects between analyst forecasts and the other two information releases exist only temporarily during the short-window announcement period, our findings highlight key differences in announcement-period information asymmetry dynamics and provide evidence that supports extant disclosure theory. Our evidence demonstrates that the directional effect of an information release on information asymmetry at announcement depends on how the information interacts with prior information held by sophisticated and unsophisticated investors.
Dissertation Abstracts International
Author | : |
Publisher | : |
Total Pages | : 1026 |
Release | : 1991 |
Genre | : Dissertations, Academic |
ISBN | : |
Abstracts of dissertations available on microfilm or as xerographic reproductions.
Changes in Analysts' Information Around Earnings Announcements
Author | : Orie E. Barron |
Publisher | : |
Total Pages | : 0 |
Release | : 2002 |
Genre | : |
ISBN | : |
In this study we examine changes in the precision and the commonality of information contained in individual analysts' earnings forecasts, focusing on changes around earnings announcements. Using the empirical proxies suggested by the Barron et al. (1998) model that are based on the across-analyst correlation in forecast errors, we find that the commonality of information among active analysts significantly decreases around earnings announcements. We also find that the idiosyncratic information contained in these individual analysts' forecasts increases significantly immediately after earnings announcements, and this increase is more significant as more analysts revise their forecasts. These results are consistent with theories positing that an important role of accounting releases is to trigger the generation of idiosyncratic information by elite information processors such as financial analysts (Kim and Verrecchia 1994, 1997).
The Accuracy and Information Content of Earnings Per Share Forecast Reports by Firms
Author | : William Ruland |
Publisher | : |
Total Pages | : 143 |
Release | : 1975 |
Genre | : Business forecasting |
ISBN | : |
Disclosure of Corporate Forecasts to the Investor
Author | : Financial Analysts Federation |
Publisher | : |
Total Pages | : 216 |
Release | : 1973 |
Genre | : Business forecasting |
ISBN | : |
The Incremental Information Content of Analysts' Research Reports and Firms' Annual Reports
Author | : June Woo Park |
Publisher | : |
Total Pages | : 0 |
Release | : 2019 |
Genre | : |
ISBN | : |
This dissertation consists of three essays, investigating the properties of analysts research reports and firms annual reports, and their impact on capital markets using textual analysis methods. The first essay studies the validity of analyst report length, measured by page count, as a proxy for analysts research effort. Specifically, I find that longer reports are positively associated with recommendation upgrades more than downgrades, and with forecast accuracy. I further document an asymmetric market reaction to longer upgrades as compared to the same length downgrades. The findings support my hypothesis that by providing more and accurate information, analysts exert credibility-enhancing effort on their upgrades, as these are perceived by investors to be more optimistic and less credible than downgrades. The study suggests differing interpretations of analyst vs. annual report length as a proxy. In a second textual analysis essay, I examine the determinants of environmental disclosures (ED) in U.S. 10-Ks (i.e. annual reports) and its impact on a future stock price crash risk. I provide crucial evidence that ED is related to bad news (i.e. news that tends to be obfuscated by managers) by showing the autocorrelation of its change over time and its negative association with short-term market reaction. In the long run, however, an increase in ED shows a lower likelihood of significant stock price drops. The results are consistent with the notion that firms benefit from non-financial information disclosure. A third textual analysis essay compares the value of private versus public information sources in U.S. analysts earnings forecasts. Using a pattern search algorithm (i.e., regular expression) on the headlines of earnings forecasts, I find that additional private sources of information are associated with less forecast error, triggering greater market reaction. Moreover, I document that the combination of management and non-management private information sources minimizes forecast error and maximizes market reaction. Finally, I show that more accurate and informative forecasts are made by analysts who make greater efforts to access private information sources, even when they do not have other information advantages (e.g. brokerage firm reputation). Thus, I provide new insight into the determinants of forecast properties.
Management Earnings Forecasts, Security Price Variability, and the Marginal Information Content of Earnings Announcements
Author | : Chao-Shin Liu |
Publisher | : |
Total Pages | : 232 |
Release | : 1992 |
Genre | : Business forecasting |
ISBN | : |
The purpose of this study is to determine (1) whether management forecasts decrease the marginal information content of subsequent earnings announcements and (2) whether the market efficiently reflects the information contained in the management forecast. If management forecasts and subsequent earnings announcements convey similar information, the subsequent earnings announcement is expected to be less informative than the prior management forecast. Moreover, the earnings announcement preceded by a management forecast is also expected to be less informative than the earnings announcement without a previous management forecast. Evidence consistent with these predictions is found using price variability to measure the degree of information content. This study also employs a system of equations model and demonstrates that the subsequent earnings announcements convey additional information to the market, with the additional information mainly associated with the ex-post management forecast error. In addition, abnormal returns around management forecasts and those around subsequent earnings announcements are negatively correlated. This evidence suggests that the market may overreact to management earnings forecasts. The post-announcement drift phenomenon is also found in the context of management quarterly earnings forecasts.
Information in the Tails of the Distribution of Analysts' Quarterly Earnings Forecasts
Author | : Philip B. Shane |
Publisher | : |
Total Pages | : 40 |
Release | : 2016 |
Genre | : |
ISBN | : |
The business press generally reports news in quarterly earnings announcements based on the difference between actual earnings and two salient benchmarks: earnings of the same quarter in the previous year, and a consensus drawn from a distribution of forecasts by financial analysts. We evaluate the implications of a third salient benchmark: the most optimistic forecast when actual earnings exceed the consensus and the most pessimistic forecast when the consensus exceeds actual earnings. We find that considering the information in these tails of the distribution of analysts' earnings forecasts enhances the profitability of earnings-based momentum trading strategies.