Access the full text.
Sign up today, get DeepDyve free for 14 days.
D Burgstahler, M Eames (2006)
Management of earnings and analysts’ forecasts to achieve zero and small positive earnings surprisesJ Bus Finan Account, 33
P O’Brien (1988)
Analysts’ forecasts as earnings expectationsJ Account Econ, 10
E Bartov, D Givoly, C Hayn (2002)
The rewards to meeting or beating earnings expectationsJ Account Econ, 33
D Burgstahler, I Dichev (1997)
Earnings management to avoid earnings decreases and lossesJ Account Econ, 24
M Clement (1999)
Analyst forecast accuracy: do ability, resources, and portfolio complexity matter?J Account Econ, 27
L Brown, P Griffin, A Hagerman, M Zmijewski (1987)
Security analyst superiority relative to univariate time series models in forecasting quarterly earningsJ Account Econ, 9
J Graham, C Harvey, S Rajgopal (2005)
The economic implications of financial reportingJ Account Econ, 40
P Dechow, R Sloan, A Sweeney (1995)
Detecting earnings managementAccount Rev, 70
R Kasznik, M McNichols (2002)
Does meeting earnings expectations matter? Evidence from analysts’ forecast revisions and share pricesJ Account Res, 40
L Brown (1997)
Analyst forecasting errors: additional evidenceFinanc Anal J, 53
R Kasznik, B Lev (1995)
To warn or not to warn: management disclosures in the face of an earnings surpriseAcc Rev, 70
V Bernard, J Thomas (1990)
Evidence that stock prices do not fully reflect the implications of current earnings for future earningsJ Account Econ, 13
D Matsumoto (2002)
Management’s incentives to guide analysts’ forecastsAcc Rev, 77
L Brown, M Rozeff (1979)
Univariate time series models of quarterly accounting earnings per share: a proposed modelJ Account Res, 17
D Skinner (1997)
Earnings disclosures and stockholders lawsuitsJ Account Econ, 23
D Mest, E Plummer (2003)
Analysts’ rationality and forecast bias: evidence from sales forecastsRev Quantitative Finance Account, 21
M Bauman, K Shaw (2006)
Stock option compensation and the likelihood of meeting analysts’ quarterly earnings targetsRev Quant Finance Acc, 26
J Jacob, T Lys, M Neale (1999)
Expertise in forecasting performance of security analystsJ Account Econ, 28
T Lopez, L Rees (2002)
The effect of beating and missing analysts’ forecasts on the information content of unexpected earningsJ Account Audit Finance, 17
D Burgstahler, W Kinney, R Martin (2002)
Earnings surprise materiality as measured by stock returnsJ Account Res, 40
J Francis, D Philbrick, K Schipper (1994)
Shareholder litigation and corporate disclosuresJ Account Res, 32
M Mikhail, B Walther, R Willis (1997)
Do security analysts improve their performance with experience?J Account Res, 35
R Kasznik (1999)
On the association between voluntary disclosure and earnings managementJ Account Res, 37
L Soffer, S Thiagarajan, B Walther (2000)
Earnings preannouncement strategiesRev Acc Stud, 5
Y Ertimur, J Livnat, M Martikainen (2003)
Differential market reactions to revenue and expense surprisesRev Account Stud, 8
F Degeorge, J Patel, R Zeckhauser (1999)
Earnings management to exceed thresholdsJ Bus, 72
R Freeman, S Tse (1989)
The multiperiod information content of accounting earnings: confirmations and contradictions of pervious earnings reportsJ Account Res, 27
Recent research provides evidence of a market premium accruing to firms that meet or beat analysts’ forecasts. We find similar results for our sample of firms. However, we also find a market premium for firms that meet or beat time-series forecasts, and that the highest market premium accrued to firms that meet or beat both analysts’ and time-series forecasts. These findings are supported by assessments of future financial performance over the next two subsequent years. Our findings are consistent with the notion that when time-series benchmark is used in conjunction with analysts’ forecasts, investors obtain a more reliable (i.e., less noisy) signal regarding whether firms have actually met or beaten market expectations.
Review of Quantitative Finance and Accounting – Springer Journals
Published: Nov 16, 2007
Read and print from thousands of top scholarly journals.
Already have an account? Log in
Bookmark this article. You can see your Bookmarks on your DeepDyve Library.
To save an article, log in first, or sign up for a DeepDyve account if you don’t already have one.
Copy and paste the desired citation format or use the link below to download a file formatted for EndNote
Access the full text.
Sign up today, get DeepDyve free for 14 days.
All DeepDyve websites use cookies to improve your online experience. They were placed on your computer when you launched this website. You can change your cookie settings through your browser.