Operating Exposure to Weather, Earnings Predictability, and Analyst Forecast

2021 ◽  
Author(s):  
Lei Zhang
Keyword(s):  
Analyst Forecast ◽  
Earnings Predictability

scholarly journals Earnings Predictability And Broker-Analysts’ Earnings Forecast Bias

2017 ◽  
Vol 33 (6) ◽  
pp. 1285-1302
Author(s):  
Michael Eames ◽  
Steven Glover
Keyword(s):  
Private Information ◽  
Alternative Model ◽  
Analyst Forecast ◽  
Earnings Forecast ◽  
Earnings Expectations ◽  
Forecast Bias ◽  
Analyst Expectations ◽  
Earnings Predictability ◽  
Using Data ◽  
Short Horizon

Scholars have reasoned that analysts issue optimistic forecasts to improve their access to managers’ private information when earnings are unpredictable. While this requires a managerial preference for analyst forecast optimism, the observed walk-down of analyst expectations to beatable forecasts is consistent with a managerial preference for pessimism in short-horizon forecasts. Using data from various sample periods, alternative model specifications, and various measures of earnings unpredictability, we find that pessimism, not optimism, in short-horizon forecasts is associated with increasingly unpredictable earnings. Our results suggest that firms can more effectively manage analysts’ earnings expectations downward when earnings are relatively unpredictable.

Equity Method Investments and Sell-Side Analysts' Information Environment

2013 ◽  
Vol 88 (6) ◽  
pp. 2089-2115 ◽  
Author(s):  
Sam (Sunghan) Lee ◽  
Shailendra Pandit ◽  
Richard H. Willis
Keyword(s):  
Information Asymmetry ◽  
Information Environment ◽  
Analyst Forecast ◽  
Forecast Errors ◽  
Forecast Dispersion ◽  
Joint Effects ◽  
Earnings Per Share ◽  
Earnings Predictability ◽  
Annual Earnings ◽  
Jel Classifications

ABSTRACT: We study the joint effects of intercompany investing and reporting of equity method investments on the accuracy and dispersion of analysts' annual earnings-per-share (EPS) forecasts. We compare firm-year observations with and without equity method investments. We posit two non-mutually exclusive explanations for how equity method investments may affect analyst forecast properties. The Opacity Effect posits that the condensed equity method disclosures increase information asymmetry, increasing analysts' forecast errors and forecast dispersion. The Diversification Effect suggests that the diversification of the investor and its investee earnings streams enhances earnings predictability, decreasing analysts' forecast errors and forecast dispersion. Our findings are consistent with both effects operating in the analyst forecasting task. Additional analyses are consistent with the Opacity Effect dominating. This occurrence results, on net, in less accurate and more dispersed forecasts for firm-years with equity method investments. JEL Classifications: G14, M41

Earnings Predictability, Bond Ratings, and Bond Yields

CFA Digest ◽  
2006 ◽  
Vol 36 (2) ◽  
pp. 34-35
Author(s):  
Christopher J. Sullivan
Keyword(s):  
Bond Yields ◽  
Bond Ratings ◽  
Earnings Predictability

What Factors Motivate the Stock Analyst Forecast on Listed Companies in Colombo Stock Exchange?

2011 ◽  
Author(s):  
Mohan Pradeep Fonseka ◽  
Gao-Liang Tian
Keyword(s):  
Stock Exchange ◽  
Listed Companies ◽  
Analyst Forecast

The Influence of Designated Sponsoring on Analyst Forecast Quality

2012 ◽  
Author(s):  
Yvonne Kreis
Keyword(s):  
Analyst Forecast ◽  
Forecast Quality

Information Technology Capability, Management Forecast Accuracy, and Analyst Forecast Revisions

2018 ◽  
Vol 32 (3) ◽  
pp. 49-70 ◽  
Author(s):  
Feiqi Huang ◽  
He Li ◽  
Tawei Wang
Keyword(s):  
Forecast Accuracy ◽  
Analyst Forecast ◽  
Management Forecasts ◽  
Forecast Revisions ◽  
It Capability ◽  
Management Forecast ◽  
Prior Literature ◽  
Technology Capability ◽  
Information Technology Capability ◽  
The Relationship

SYNOPSISPrior literature has firmly established the relationship between IT capability and firm performance. In this paper, we extend the research in this field and investigate (1) whether IT capability contributes to management forecast accuracy, and (2) whether IT capability improves the informativeness of management forecasts and enhances the extent to which analysts incorporate management forecasts in their revisions. Using firms listed on InformationWeek 500 as our high IT capability group, we empirically demonstrate that firms with high IT capability are able to increase management forecast accuracy, and that analysts incorporate more information from management forecasts in their revisions if the firm has high IT capability.

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