Full metadata
Title
Do financial analysts respond efficiently to managers' earnings guidance?
Description
When managers provide earnings guidance, analysts normally respond within a short time frame with their own earnings forecasts. Within this setting, I investigate whether financial analysts use publicly available information to adjust for predictable error in management guidance and, if so, the explanation for such inefficiency. I provide evidence that analysts do not fully adjust for predictable guidance error when revising forecasts. The analyst inefficiency is attributed to analysts' attempts to advance relationship with the managers, analysts' compensation not tie to forecast accuracy, and their forecasting ability. Finally, the stock market acts as if it does not fully realize that analysts respond inefficiently to the guidance, introducing mispricing. This mispricing is not fully corrected upon earnings announcement.
Date Created
2012
Contributors
- Lin, Kuan-Chen (Author)
- Mikhail, Michael (Thesis advisor)
- Hillegeist, Stephen (Committee member)
- Hugon, Jean (Committee member)
- Arizona State University (Publisher)
Topical Subject
Resource Type
Extent
iv, 57 p
Language
Copyright Statement
In Copyright
Primary Member of
Peer-reviewed
No
Open Access
No
Handle
https://hdl.handle.net/2286/R.I.14741
Statement of Responsibility
by Kuan-Chen Lin
Description Source
Viewed on Dec. 22, 2014
Level of coding
full
Note
Partial requirement for: Ph. D., Arizona State University, 2012
Note type
thesis
Includes bibliographical references (p. 46-51)
Note type
bibliography
Field of study: Accountancy
System Created
- 2012-08-24 06:21:15
System Modified
- 2021-08-30 01:47:32
- 2 years 8 months ago
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