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Analysts' Earnings (analyst + earning)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting100%

Terms modified by Analysts' Earnings

  • analyst earning forecast
    		•

    Selected Abstracts

    Domestic Accounting Standards, International Accounting Standards, and the Predictability of Earnings

    JOURNAL OF ACCOUNTING RESEARCH, Issue 3 2001
    Hollis Ashbaugh
    We investigate (1) whether the variation in accounting standards across national boundaries relative to International Accounting Standards (IAS) has an impact on the ability of financial analysts to forecast non-U.S. firms' earnings accurately, and (2) whether analyst forecast accuracy changes after firms adopt IAS. IAS are a set of financial reporting policies that typically require increased disclosure and restrict management's choices of measurement methods relative to the accounting standards of our sample firms' countries of domicile. We develop indexes of differences in countries' accounting disclosure and measurement policies relative to IAS, and document that greater differences in accounting standards relative to IAS are significantly and positively associated with the absolute value of analyst earnings forecast errors. Further, we show that analyst forecast accuracy improves after firms adopt IAS. More specifically, after controlling for changes in the market value of equity, changes in analyst following, and changes in the number of news reports, we find that the convergence in firms' accounting policies brought about by adopting IAS is positively associated with the reduction in analyst forecast errors. [source]

    Retail Investor Sentiment and Return Comovements

    THE JOURNAL OF FINANCE, Issue 5 2006
    ALOK KUMAR
    ABSTRACT Using a database of more than 1.85 million retail investor transactions over 1991,1996, we show that these trades are systematically correlated,that is, individuals buy (or sell) stocks in concert. Moreover, consistent with noise trader models, we find that systematic retail trading explains return comovements for stocks with high retail concentration (i.e., small-cap, value, lower institutional ownership, and lower-priced stocks), especially if these stocks are also costly to arbitrage. Macroeconomic news and analyst earnings forecast revisions do not explain these results. Collectively, our findings support a role for investor sentiment in the formation of returns. [source]

    IPO Underpricing, Firm Quality, and Analyst Forecasts

    FINANCIAL MANAGEMENT, Issue 2 2007
    Steven X. Zheng
    We find that IPO underpricing is positively related to post-IPO growth in sales and EBITDA, but is not significantly related to growth in earnings. Our evidence suggests that accrual reversals or earnings management may cause this inconsistency. We interpret the growth rates of sales and EBITDA as measures of firm quality, and conclude that our evidence supports the notion that IPO firms with greater underpricing are of better quality. Our tests on analysts' earnings forecast errors show that analysts are less positively biased in their earnings forecasts for IPO firms that have greater underpricing. [source]

    Predictability in Financial Analyst Forecast Errors: Learning or Irrationality?

    JOURNAL OF ACCOUNTING RESEARCH, Issue 4 2006
    STANIMIR MARKOV
    ABSTRACT In this paper, we propose a rational learning-based explanation for the predictability in financial analysts' earnings forecast errors documented in prior literature. In particular, we argue that the serial correlation pattern in analysts' quarterly earnings forecast errors is consistent with an environment in which analysts face parameter uncertainty and learn rationally about the parameters over time. Using simulations and real data, we show that the predictability evidence is more consistent with rational learning than with irrationality (fixation on a seasonal random walk model or some other dogmatic belief). [source]

    S&P 500 Index Additions and Earnings Expectations

    THE JOURNAL OF FINANCE, Issue 5 2003
    Diane K. Denis
    Stock price increases associated with addition to the S&P 500 Index have been interpreted as evidence that demand curves for stocks slope downward. A key premise underlying this interpretation is that Index inclusion provides no new information about companies' future prospects. We examine this premise by analyzing analysts' earnings per share (eps) forecasts around Index inclusion and by comparing postinclusion realized earnings to preinclusion forecasts. Relative to benchmark companies, companies newly added to the Index experience significant increases in eps forecasts and significant improvements in realized earnings. These results indicate that S&P Index inclusion is not an information-free event. [source]

    The Effect of Regulation Fair Disclosure on Conference Calls: The Case of Earnings Surprises,

    ASIA-PACIFIC JOURNAL OF FINANCIAL STUDIES, Issue 6 2009
    Bok Baik
    Abstract While conference calls have been widely used as a communication tool between firms and investors, little research has examined the effect of this voluntary disclosure metric on analyst forecasts. In this paper, we examine whether firms use conference calls to guide down analysts' earnings forecasts, thereby avoiding negative earnings surprises before and after Regulation FD. Our findings show that firms hosting conference calls are more likely to guide analysts' forecasts downward and, as a result, they tend to successfully avoid negative earnings surprises in the pre Reg FD period. However, we do not find such relations in the post Reg FD period. We also find that the market reacts positively to firms hosting conference calls only in the post Reg FD period, consistent with the view that the market rewards a reduction in managers' opportunistic guidance to meet the analysts' earnings estimate. [source]