Analyst Forecast Revision and Market Price Discovery Following Accounting Restatement

2006 ◽  
Author(s):  
Ran Barniv ◽  
Jian Cao
Keyword(s):  
Price Discovery ◽  
Market Price ◽  
Analyst Forecast ◽  
Forecast Revision

Analyst Forecast Revisions and Market Price Discovery

2003 ◽  
Vol 78 (1) ◽  
pp. 193-225 ◽  
Author(s):  
Cristi A. Gleason ◽  
Charles M. C. Lee
Keyword(s):  
Price Discovery ◽  
Market Price ◽  
Price Adjustment ◽  
Adjustment Process ◽  
Analyst Forecast ◽  
Wall Street ◽  
Cross Sectional ◽  
Analyst Coverage ◽  
Forecast Revisions ◽  
New Information

We document several factors that help explain cross-sectional variations in the post-revision price drift associated with analyst forecast revisions. First, the market does not make a sufficient distinction between revisions that provide new information (“high-innovation” revisions) and revisions that merely move toward the consensus (“low-innovation” revisions). Second, the price adjustment process is faster and more complete for “celebrity” analysts (Institutional Investor All-Stars) than for more obscure yet highly accurate analysts (Wall Street Journal Earnings-Estimators). Third, controlling for other factors, the price adjustment process is faster and more complete for firms with greater analyst coverage. Finally, a substantial portion of the delayed price adjustment occurs around subsequent earnings-announcement and forecast-revision dates. Collectively, these findings show that more subtle aspects of an earnings revision signal can hinder the efficacy of market price discovery, particularly in firms with relatively low analyst coverage, and that subsequent earnings-related news events serve as catalysts in the price discovery process.

Stock Splits: Tests of the Earnings Signaling and Attention Directing Hypotheses Using Analyst Forecasts and Revisions

1994 ◽  
Vol 9 (3) ◽  
pp. 411-422 ◽  
Author(s):  
David T. Doran
Keyword(s):  
Earnings Forecasts ◽  
Analyst Forecasts ◽  
Analyst Forecast ◽  
Specific Level ◽  
Future Earnings ◽  
Earnings Information ◽  
Stock Split ◽  
Forecast Revision ◽  
Earnings Performance ◽  
Signaling Hypothesis

The major findings of this study are: (1) earnings performance of splitting firms is favorable relative to preevent longterm analyst (Value Line) forecasts; (2) analysts significantly revise earnings forecasts upward in response to stock split announcements; and (3) in the case of stock split announcing firms, there is a high correlation between future earnings performance and analyst forecast revision. These findings indicate that stock split announcements convey “permanent” earnings information to the market, and security analysts scrutinize the earnings signal at the firm specific level. The results support both the earnings signaling hypothesis and the attention directing hypothesis concerning stock split events.

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]).

The effect of universal futures on opening and closing stock market price discovery

2011 ◽  
Vol 28 (4) ◽  
pp. 260-281
Author(s):  
Patricia L. Chelley‐Steeley ◽  
James M. Steeley
Keyword(s):  
Stock Market ◽  
Price Discovery ◽  
Market Price ◽  
Opening And Closing

Factors affecting an analyst forecast revision— Taiwan and the United States: A comparison

1997 ◽  
Vol 32 (1) ◽  
pp. 63-77 ◽  
Author(s):  
Glen D. Moyes ◽  
Kyungjoo Park ◽  
Andrew Minglong Wang ◽  
Patricia A. Williams
Keyword(s):  
United States ◽  
The United States ◽  
Analyst Forecast ◽  
Factors Affecting ◽  
Forecast Revision

An analysis of time-varying commodity market price discovery

2018 ◽  
Vol 57 ◽  
pp. 122-133 ◽  
Author(s):  
Paresh Kumar Narayan ◽  
Susan Sunila Sharma
Keyword(s):  
Price Discovery ◽  
Market Price ◽  
Commodity Market ◽  
Time Varying
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