scholarly journals S&P 500 Index Revisions And Analyst Coverage

2013 ◽  
Vol 29 (4) ◽  
pp. 1199 ◽  
Author(s):  
Qin Wang ◽  
Hei Wai Lee ◽  
Vivek Singh
Keyword(s):  
Information Environment ◽  
Earnings Forecast ◽  
Sample Period ◽  
Supportive Evidence ◽  
Forecast Dispersion ◽  
Analyst Coverage ◽  
The Impact

This paper examines theimpacts of revisions in the composition of the S&P 500 Index on theinformation environment of sample firms being added to or deleted from theIndex. We use the intensity (number of analysts and number of earningsestimates) and the quality (earnings forecast dispersion and accuracy) ofanalyst coverage to measure the information environment of sample firms. Wefind that firms that are added to the Index experienced significant increase inanalyst coverage while those deleted from the Index suffered reduction inanalyst coverage following the revision in the S&P 500 Index. The findingson the quality of analyst coverage also provide supportive evidence. There are increases in earnings forecastdispersion for both added and deleted firms, and improvements in forecastaccuracy for sample firms. In addition, further findings indicate a negativecorrelation between the impact of index revision on the information environmentand the intensity of pre-revision analyst coverage on the sample firms. Overall,our results suggest that index revisions have material impacts on the informationenvironment of sample firms that were added to, or deleted from, the S&P500 Index over the sample period of 1990 2007.

Discussion: “Dispersion in Analysts' Earnings Forecasts as a Measure of Uncertainty”

1998 ◽  
Vol 13 (3) ◽  
pp. 271-274 ◽  
Author(s):  
Lawrence D. Brown
Keyword(s):  
Stock Price ◽  
Annual Report ◽  
Earnings Forecasts ◽  
Analyst Forecast ◽  
Earnings Forecast ◽  
Data Set ◽  
Forecast Dispersion ◽  
Forecast Revision ◽  
Analyst Earnings ◽  
The Impact

This paper tackles an interesting question; namely, whether dispersion in analysts' earnings forecasts reflects uncertainty about firms' future economic performance. It improves on the extant literature in three ways. First, it uses detailed analyst earnings forecast data to estimate analyst forecast dispersion and revision. The contrasting evidence of Morse, Stephan, and Stice (1991) and Brown and Han (1992), who respectively used consensus and detailed analyst data to examine the impact of earnings announcements on forecast dispersion, suggest that detailed data are preferable for determining the data set on which analysts' forecasts are conditioned. Second, it relates forecast dispersion to both analyst earnings forecast revision and stock price reaction to the subsequent earnings announcement. Previous studies related forecast dispersion to either analyst forecast revision (e.g., Stickel 1989) or to subsequent stock price movements (e.g., Daley et al. [1988]), but not to both revision and returns. Third, it includes the interim quarters along with the annual report. In contrast, previous research focused on the annual report, ignoring the interims (Daley et al. [1988]).

Does Tenure Matter: Role of the Corporate Secretary in Chinese-Listed Firms

2018 ◽  
Vol 33 (1) ◽  
pp. 181-205 ◽  
Author(s):  
Chen Wang ◽  
Qing Ye ◽  
Abhinav Goyal
Keyword(s):  
Board Meeting ◽  
Analyst Coverage ◽  
Listed Firms ◽  
Board Processes ◽  
Outside Director ◽  
Institutional Shareholders ◽  
The Impact ◽  
Variable Analysis

SYNOPSIS We study the impact of corporate secretary tenure on the governance quality of Chinese A-share listed firms. Results show that corporate secretary tenure is negatively associated with board meeting frequency, outside director in-meeting dissent, and incidence of fraud and lawsuit. Key findings are robust to an array of additional tests including propensity score matching, instrument variable analysis, as well as alternate governance measures such as analyst coverage, modified auditor opinion, number of institutional shareholders, and outside director board meeting absence. Overall, our study confirms the importance of corporate secretary in favor of modern corporate governance outcomes and board processes. JEL Classifications: G15; G30; K22; M41.

I/B/E/S Reported Actual EPS and Analysts' Inferred Actual EPS

2012 ◽  
Vol 88 (3) ◽  
pp. 853-880 ◽  
Author(s):  
Lawrence D. Brown ◽  
Stephannie Larocque
Keyword(s):  
Majority Rule ◽  
Forecast Accuracy ◽  
Earnings Forecasts ◽  
Analyst Forecast ◽  
Earnings Forecast ◽  
Sample Period ◽  
Forecast Dispersion ◽  
Forecast Revisions ◽  
Earnings Surprises ◽  
Analyst Earnings

ABSTRACT Users of I/B/E/S data generally act as if I/B/E/S reported actual earnings represent the earnings analysts were forecasting when they issued their earnings estimates. For example, when assessing analyst forecast accuracy, users of I/B/E/S data compare analysts' forecasts of EPS with I/B/E/S reported actual EPS. I/B/E/S states that it calculates actuals using a “majority rule,” indicating that its actuals often do not represent the earnings that all individual analysts were forecasting. We introduce a method for measuring analyst inferred actuals, and we assess how often I/B/E/S actuals do not represent analyst inferred actuals. We find that I/B/E/S reported Q1 actual EPS differs from analyst inferred actual Q1 EPS by at least one penny 39 percent of the time during our sample period, 36.5 percent of the time when only one analyst follows the firm (hence, this consensus forecast is based on the “majority rule”), and 50 percent of the time during the last three years of our sample period. We document two adverse consequences of this phenomenon. First, studies failing to recognize that I/B/E/S EPS actuals often differ from analyst inferred actuals are likely to obtain less accurate analyst earnings forecasts, smaller analyst earnings forecast revisions conditional on earnings surprises, greater analyst forecast dispersion, and smaller market reaction to earnings surprises than do studies adjusting for these differences. Second, studies failing to recognize that I/B/E/S EPS actuals often differ from analyst inferred actuals may make erroneous inferences.

Earnings informativeness in dual-class firms

2019 ◽  
Vol 18 (3) ◽  
pp. 399-431 ◽  
Author(s):  
Olesya Lobanova ◽  
Abhijit Barua ◽  
Suchismita Mishra ◽  
Arun J. Prakash
Keyword(s):  
Empirical Support ◽  
Information Environment ◽  
Forecast Errors ◽  
Single Class ◽  
Forecast Dispersion ◽  
Content Type ◽  
Bid Ask Spread ◽  
Earnings Informativeness ◽  
Dual Class

Purpose The purpose of this study is to explain the poor informativeness of earnings in dual-class firms by examining the quality of earnings and the information environment. Design/methodology/approach The earnings informativeness, earnings quality and information environment of dual-class firms are compared with a matched sample of single-class firms. The authors have performed the returns-earnings association tests, examine the quality of earnings by using proxies for discretionary accruals, and examine the information environment by employing four empirical constructs: the analyst forecast dispersion, absolute forecast errors, Amihud’s (2002) illiquidity measure, and the bid-ask spread. Findings The results show that the quality of earnings is better while the quality of the information environment is worse in dual-class firms compared to single-class firms. Overall, the results suggest that an inferior information environment is a plausible explanation for the low informativeness of dual-class firms’ earnings. Research limitations/implications The results provide empirical support for Dechow et al. (2010) that the use of the earnings-returns association measure to draw conclusions about the quality of earnings is not appropriate in the presence of a poor information environment. Originality/value This is the first study to empirically show that low earnings informativeness in dual-class firms can be explained by the inferior quality of the information environment.

scholarly journals The effect of ifrs enforcement factors on analysts’ earnings forecasts accuracy

2015 ◽  
Vol 13 (1) ◽  
pp. 266-282 ◽  
Author(s):  
Nadia Cheikh Rouhou ◽  
Fatma Wyème Ben Mrad Douagi ◽  
Khaled Hussainey
Keyword(s):  
Corporate Governance ◽  
Forecast Accuracy ◽  
Earnings Forecasts ◽  
Board Members ◽  
Earnings Forecast ◽  
External Audit ◽  
Corporate Governance Mechanisms ◽  
Mandatory Adoption ◽  
The Impact

This paper examines the effect of IFRS mandatory adoption by French companies on analysts’ earnings forecast accuracy. In addition, we consider the impact of corporate governance mechanisms, as IFRS enforcement factors, on earnings forecasts. Using a sample of 98 companies over the period from 2003 to 2007, our results show increased forecast accuracy after the mandatory adoption of IFRS. We also find that the independence, the international competency and the efficiency of the board members, the board size, and the quality of external audit are important factors for the implementation of IFRS and, these factors improve earnings forecast accuracy.

Analyst earnings forecast revision activity around profit warnings across four European countries

2015 ◽  
Vol 16 (1) ◽  
pp. 58-87 ◽  
Author(s):  
François Aubert ◽  
Waël Louhichi
Keyword(s):  
Investor Protection ◽  
Financial Analysts ◽  
Information Environment ◽  
European Countries ◽  
Earnings Forecast ◽  
Content Type ◽  
Legal Information ◽  
Reporting Practices ◽  
Ex Post ◽  
The Impact

Purpose – The purpose of this paper is to report on research concerning financial analysts’ activity surrounding profit warnings issued by listed companies in the four largest European stock exchanges (France, Germany, the Netherlands and the UK). The authors address three aspects of analysts’ forecasts: ex-post accuracy of forecasts, earnings forecast revisions, and consensus forecast dispersion. The goal of the analysis is to study the differences between financial analysts’ behavior within different regulatory settings, namely common law vs civil law countries. Design/methodology/approach – The sample is composed of 1,330 profit warnings issued by listed European firms during the period 2000-2010. The authors apply event study methodology and OLS regressions to highlight the impact of the legal information environment on analysts’ reactions. Findings – The empirical analysis reveals that analyst activity depends on each country’s legal context factors, such as the legal information environment of the firm and the index of investor protection. Accordingly, the authors show that both a richer legal information environment and stronger country-level investor protection substantially improve analyst accuracy around profit warnings. Research limitations/implications – The sample is only composed on firms from four European countries owing to a lack of firms from other European countries that disclosed PW during the period 2000-2010. It would be pertinent to conduct future research dealing with an international sample from different continents. Practical implications – The paper contributes to a deeper understanding of analysts’ reactions to profit warnings. The findings can influence firms’ reporting practices and lead to future regulation policies. Originality/value – This work is the first to examine the relationship between profit warning releases and the behavior of financial analysts in a pan-European context where there are different institutional levels of investor protection.

scholarly journals Managerial Ability and the Quality of Firms’ Information Environment

2017 ◽  
Vol 33 (4) ◽  
pp. 506-527 ◽  
Author(s):  
Bok Baik ◽  
Paul A. Brockman ◽  
David B. Farber ◽  
Sam (Sunghan) Lee
Keyword(s):  
Financial Reporting ◽  
Composite Index ◽  
Conclusive Evidence ◽  
Information Environment ◽  
Managerial Ability ◽  
Management Forecast ◽  
Equity Incentives ◽  
Accruals Quality ◽  
The Impact

In this study, we examine the relation between managerial ability and the quality of a firm’s information environment. An emerging stream of research has identified managerial ability as an important determinant of accruals quality and management forecast quality. However, our understanding of the impact of managerial ability on a firm’s broader information environment is incomplete because it captures more than these specific financial reporting disclosures. Using a composite index based on various proxies for a firm’s information environment, we find a positive relation between managerial ability and a firm’s information environment. Consistent with our argument that managers’ equity incentives improve disclosure quality, we find that the quality of a firm’s information environment improves when managers have higher levels of equity incentives. We contribute to the literature by providing more complete and conclusive evidence about the impact of managerial ability on a firm’s broader information environment.

scholarly journals Impacts of the Allocation of Governmental Resources for Improving the Environment. An Empirical Analysis on Developing European Countries

2020 ◽  
Vol 17 (8) ◽  
pp. 2783 ◽  
Author(s):  
Mihaela Onofrei ◽  
Anca-Florentina Gavriluţă (Vatamanu) ◽  
Ionel Bostan ◽  
Bogdan Florin Filip ◽  
Claudia Laurența Popescu ◽  
...  
Keyword(s):  
Life Expectancy ◽  
Environmental Sustainability ◽  
Human Society ◽  
Sample Period ◽  
Environment Protection ◽  
Sustainability Index ◽  
The Government ◽  
Environmental Sustainability Index ◽  
The Impact

The last years have brought into attention more than ever concerns regarding the accelerating degradation of the environmental conditions which threaten both the present but mainly the future of human society. Under such circumstances, the society and especially the governments need to acknowledge the seriousness of environment issues and be able to develop and put into practice specific policies to counteract them. In this regard, this paper performs an analysis on a group of 11 European developing countries, over the period between 2000 and 2017, aiming first to evaluate the impact of the changing environment conditions and of the governmental actions regarding environment protection, on citizens life, namely on their life expectancy. In order to evaluate, as accurately as possible, the quality of the environment we propose and elaborate upon an environmental sustainability index based on 17 proxies for environment issues, whose values reveal several similarities between some of the analyzed countries. Secondly, using this index and also several categories of public expenses as proxies for the government actions towards environment protection, we analyze their impact on the life expectancy of the citizens during the sample period and draw some specific conclusions on the actions to be taken forward by governments.

Self-Compassion and Quality of Life in Adults Who Stutter

2020 ◽  
Vol 29 (4) ◽  
pp. 2097-2108
Author(s):  
Robyn L. Croft ◽  
Courtney T. Byrd
Keyword(s):  
Quality Of Life ◽  
Social Connectedness ◽  
The Self ◽  
Future Research ◽  
Self Compassion ◽  
Adults Who Stutter ◽  
And Gender ◽  
Relationship Of ◽  
The Impact

Purpose The purpose of this study was to identify levels of self-compassion in adults who do and do not stutter and to determine whether self-compassion predicts the impact of stuttering on quality of life in adults who stutter. Method Participants included 140 adults who do and do not stutter matched for age and gender. All participants completed the Self-Compassion Scale. Adults who stutter also completed the Overall Assessment of the Speaker's Experience of Stuttering. Data were analyzed for self-compassion differences between and within adults who do and do not stutter and to predict self-compassion on quality of life in adults who stutter. Results Adults who do and do not stutter exhibited no significant differences in total self-compassion, regardless of participant gender. A simple linear regression of the total self-compassion score and total Overall Assessment of the Speaker's Experience of Stuttering score showed a significant, negative linear relationship of self-compassion predicting the impact of stuttering on quality of life. Conclusions Data suggest that higher levels of self-kindness, mindfulness, and social connectedness (i.e., self-compassion) are related to reduced negative reactions to stuttering, an increased participation in daily communication situations, and an improved overall quality of life. Future research should replicate current findings and identify moderators of the self-compassion–quality of life relationship.

Surgery for Lung Cancer and the Consequences for the Swallow

2016 ◽  
Vol 1 (13) ◽  
pp. 162-168
Author(s):  
Pippa Hales ◽  
Corinne Mossey-Gaston
Keyword(s):  
Lung Cancer ◽  
Treatment Options ◽  
Vocal Cord Palsy ◽  
Subsequent Treatment ◽  
Physiological Reserve ◽  
Palliative Phase ◽  
And Function ◽  
The Impact ◽  
Swallow Function

Lung cancer is one of the most commonly diagnosed cancers across Northern America and Europe. Treatment options offered are dependent on the type of cancer, the location of the tumor, the staging, and the overall health of the person. When surgery for lung cancer is offered, difficulty swallowing is a potential complication that can have several influencing factors. Surgical interaction with the recurrent laryngeal nerve (RLN) can lead to unilateral vocal cord palsy, altering swallow function and safety. Understanding whether the RLN has been preserved, damaged, or sacrificed is integral to understanding the effect on the swallow and the subsequent treatment options available. There is also the risk of post-surgical reduction of physiological reserve, which can reduce the strength and function of the swallow in addition to any surgery specific complications. As lung cancer has a limited prognosis, the clinician must also factor in the palliative phase, as this can further increase the burden of an already compromised swallow. By understanding the surgery and the implications this may have for the swallow, there is the potential to reduce the impact of post-surgical complications and so improve quality of life (QOL) for people with lung cancer.

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