Reductions in Analysts' Annual Earnings Forecast Errors Using Information in Prior Earnings and Security Returns

1994 ◽  
Vol 32 (2) ◽  
pp. 290 ◽  
Author(s):  
Pieter T. Elgers ◽  
May H. Lo
Keyword(s):  
Earnings Forecast ◽  
Forecast Errors ◽  
Security Returns ◽  
Annual Earnings

The Association between Unsystematic Security Returns and the Magnitude of Earnings Forecast Errors

1979 ◽  
Vol 17 (2) ◽  
pp. 316 ◽  
Author(s):  
William H. Beaver ◽  
Roger Clarke ◽  
William F. Wright
Keyword(s):  
Earnings Forecast ◽  
Forecast Errors ◽  
Security Returns

scholarly journals The incremental information content of half-yearly earnings data releases by South African companies

1986 ◽  
Vol 17 (3) ◽  
pp. 130-138
Author(s):  
R. F. Knight ◽  
J. F. Affleck-Graves
Keyword(s):  
Information Content ◽  
Stock Exchange ◽  
Investment Strategy ◽  
Good News ◽  
Earnings Forecast ◽  
Forecast Errors ◽  
Johannesburg Stock Exchange ◽  
News Announcements ◽  
Incremental Information ◽  
Annual Earnings

In this article the information content of half-yearly earnings announcements is examined. Both annual and interim announcements are examined using the Abnormal Performance Index (API) methodology and it is shown that both sets of announcements provide incremental information. The results obtained indicate that, on average, the second-half announcements prove more informative than the second-half reports. Nevertheless, the first-half reports are still shown to provide significant incremental information. In addition, the results obtained are consistent with previous results in the sense that the API plots indicate asymmetrical behaviour with respect to 'good news' and 'bad news' announcements. Finally, it is shown that an investment strategy based on a foreknowledge of half-yearly earnings forecast errors provides higher returns than a similar strategy based on annual earnings forecast errors. This clear indication of the information content of half-yearly announcements leads the authors to speculate on whether quarterly reporting might not be in the interests of shareholders on the Johannesburg Stock Exchange.

Regulation FD and the Financial Information Environment: Early Evidence

2003 ◽  
Vol 78 (1) ◽  
pp. 1-37 ◽  
Author(s):  
Frank Heflin ◽  
K. R. Subramanyam ◽  
Yuan Zhang
Keyword(s):  
Stock Prices ◽  
Earnings Announcements ◽  
Relevant Information ◽  
Financial Information ◽  
Earnings Forecast ◽  
Forecast Errors ◽  
Informational Efficiency ◽  
The Public ◽  
Fair Disclosure ◽  
Regulation Fd

On October 23, 2000, the SEC implemented Regulation FD (Fair Disclosure), which prohibits firms from privately disclosing value-relevant information to select securities markets professionals without simultaneously disclosing the same information to the public. We examine whether Regulation FD's prohibition of selective disclosure impairs the flow of financial information to the capital markets prior to earnings announcements. After implementation of FD, we find (1) improved informational efficiency of stock prices prior to earnings announcements, as evidenced by smaller deviations between pre-and post-announcement stock prices; (2) no reliable evidence of change in analysts' earnings forecast errors or dispersion; and (3) a substantial increase in the volume of firms' voluntary, forward-looking, earnings-related disclosures. Overall, we find no evidence Regulation FD impaired the information available to investors prior to earnings announcements, and some of our evidence is consistent with improvement.

scholarly journals The Relationship between Delay in Announcing Quarterly Forecasts of Annual Earnings and the Type of Earnings News

Organizacija ◽  
2013 ◽  
Vol 46 (2) ◽  
pp. 64-71
Author(s):  
Mahdi Moradi ◽  
Mahdi Salehi ◽  
Seyyed Saeed Mehrdad Ayask
Keyword(s):  
Positive Relationship ◽  
Financial Statements ◽  
Bad News ◽  
Good News ◽  
Earnings Forecast ◽  
Financial News ◽  
Annual Earnings ◽  
First Time ◽  
The Relationship ◽  
Unique Context

The current study aims to examine the relationship between delay in the announcement of quarterly forecasts of annual earnings and the type of earnings news in a unique context. Running a multiple linear regression on data collected from Rahavard Novin software and the companies’ financial statements, is the method of this study to investigate this relationship. Consistent with the pattern of good news early, bad news late, it was found that there is a positive relationship between the bad news type and the amount of delay in announcing quarterly forecast of annual earnings; so that the firms with negative adjustments in earnings forecast (bad news), on average, have 12 more days delay in the announcement. Considering other variables showed that as coverage percentage - a sign of success - increases, the amount of delay in announcing earnings forecast decreases, but companies with losses per share, on average, have an additional delay of about 6 days. The results obtained indicate that at least, in some industries there is certain time for reporting. Finally, it became clear that in the period after the adoption of the new disclosure instruction, despite the increased deadline, the amount of delay in earnings announcement has declined by about 2 days. In this study, for the first time in Iran, one of the company’s financial news (quarterly forecasts of annual earnings), have been classified into good and bad, based on comparison with the market expectation, and the relationship between the news type and the amount of delay in announcing the news, has been examined.

scholarly journals A note on analysts’ earnings forecast errors distribution

2003 ◽  
Vol 36 (1-3) ◽  
pp. 147-164 ◽  
Author(s):  
Daniel A Cohen ◽  
Thomas Z Lys
Keyword(s):  
Earnings Forecast ◽  
Forecast Errors
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