The Timing and Value of Forecast and Recommendation Revisions: Do Analysts Receive Early Peek at Good News?
The Timing and Value of Forecast and Recommendation Revisions: Do Analysts Receive Early Peek at Good News?
Author(s):
Year: 2003
Paper Number:
GBS-FIN-2003-004
Goizueta Department:
Finance
Full text available as: |
Abstract
This paper evaluates the information content of analysts' one-quarter ahead earnings forecast revisions and recommendation revisions at various points in time relative to earnings announcement dates. We conduct three sets of tests to evaluate the information content of revisions. Across all tests, we find that the revisions are least informative in the week after earnings announcements and that the information content of revisions generally increases over event time. We find a sharp increase in the information content of upward forecast revisions and recommendations upgrades, but we do not find a similar increase for downward revisions and recommendation downgrades.
| Keywords: | Financial markets, Brokerage analysts, Earnings forecasts, Analyst recommendations, Asymmetric and private information |
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| Subjects: | Business > Finance |
| Notes: | Registration required to access full-text papers on ssrn.com Narasimhan_Jegadeesh@bus.emory.edu Emory University - Department of Finance Atlanta , GA 30322-2710 United States |
| Deposited On: | 09 August 2005 |
| Alternative Locations: | http://papers.ssrn.com/sol3/papers.cfm?abstract_id=359320 |
