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Conference Paper: Less is more when analysts report bad news
Title | Less is more when analysts report bad news |
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Authors | |
Issue Date | 2012 |
Publisher | The Financial Management Association. |
Citation | The 2012 Annual Meeting of the Financial Management Association (FMA), Atlanta, GA., 17-20 October 2012. How to Cite? |
Abstract | This study documents the existence of a positive-negative asymmetry in analysts’ consensus earnings forecast revisions. We find that upward revisions are more informative than downward revisions. After controlling for momentum, extreme downward revisions contain little incremental information compared with moderate downward revisions. The differential richness of information set in good and bad news revisions is more pronounced among bigger, more heavily covered stocks and stocks with higher institutional holding, i.e. stocks typically are more prone to the analyst agency problem. These findings are consistent with the claim that analysts systematically struggle with bad news reporting as conflicts are exacerbated with bad news but are attenuated with good news. |
Description | Session 166: Sell-Side Analysts Top Ten Session |
Persistent Identifier | http://hdl.handle.net/10722/182132 |
DC Field | Value | Language |
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dc.contributor.author | Chang, EC | en_US |
dc.contributor.author | Li, Z | en_US |
dc.date.accessioned | 2013-04-17T07:23:37Z | - |
dc.date.available | 2013-04-17T07:23:37Z | - |
dc.date.issued | 2012 | en_US |
dc.identifier.citation | The 2012 Annual Meeting of the Financial Management Association (FMA), Atlanta, GA., 17-20 October 2012. | en_US |
dc.identifier.uri | http://hdl.handle.net/10722/182132 | - |
dc.description | Session 166: Sell-Side Analysts | - |
dc.description | Top Ten Session | - |
dc.description.abstract | This study documents the existence of a positive-negative asymmetry in analysts’ consensus earnings forecast revisions. We find that upward revisions are more informative than downward revisions. After controlling for momentum, extreme downward revisions contain little incremental information compared with moderate downward revisions. The differential richness of information set in good and bad news revisions is more pronounced among bigger, more heavily covered stocks and stocks with higher institutional holding, i.e. stocks typically are more prone to the analyst agency problem. These findings are consistent with the claim that analysts systematically struggle with bad news reporting as conflicts are exacerbated with bad news but are attenuated with good news. | - |
dc.language | eng | en_US |
dc.publisher | The Financial Management Association. | - |
dc.relation.ispartof | 2012 FMA Annual Meeting | en_US |
dc.title | Less is more when analysts report bad news | en_US |
dc.type | Conference_Paper | en_US |
dc.identifier.email | Chang, EC: ecchang@business.hku.hk | en_US |
dc.identifier.email | Li, Z: lizhehk@yahoo.com.hk | en_US |
dc.identifier.authority | Chang, EC=rp01050 | en_US |
dc.description.nature | postprint | - |
dc.identifier.hkuros | 213826 | en_US |
dc.publisher.place | United States | - |