Abnormal Returns After Meeting Quarterly Earnings Forecasts PDF Download

Author: Rohit Mathur
Publisher:
ISBN:
Category :
Languages : en
Pages : 102

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Author: Lynn L. Rees
Publisher:
ISBN:
Category :
Languages : en
Pages : 34

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Book Description
Recent studies in the accounting literature provide evidence of a market premium whenever firms meet or exceed analysts' earnings forecasts. Financial analysts typically issue revenue forecasts in addition to earnings forecasts. In this study, we draw our motivation from the cue consistency theory to examine whether meeting or exceeding revenue forecasts serves as an additional cue to the market in pricing earnings performance. Consistent with this theory, we show that the market premium (penalty) to meeting or beating (not meeting) earnings forecasts is accentuated when revenue forecasts are also met (not met). Meeting earnings forecasts but not meeting revenue forecasts generally results in a significantly negative market penalty, and the magnitude of the earnings response coefficient jointly depends on whether the earnings and revenue forecasts are met or not. Finally, consistent with previous research, we document a significant association between revenue forecast errors and quarterly abnormal returns. However, we show that after allowing for differential market reactions depending on whether earnings and revenue forecasts are met, this association becomes insignificant. This result suggests that the value of meeting revenue forecasts is arguably of greater importance to market participants than the magnitude of the revenue forecast error.

Author: Arnoldo Jose Rodriguez
Publisher:
ISBN:
Category :
Languages : en
Pages : 114

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Author: Jeffery Abarbanell
Publisher:
ISBN:
Category : Stocks
Languages : en
Pages : 50

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Author: Myung Chul Chung
Publisher:
ISBN:
Category : Stock price forecasting
Languages : en
Pages : 316

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Author: Leigh Drogen
Publisher:
ISBN:
Category :
Languages : en
Pages : 13

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Book Description
In our paper, "Generating Abnormal Returns Using Crowdsourced Earnings Forecasts From Estimize" we examine consensus EPS and Revenue forecasts derived from the crowdsourced community Estimize, and find that they are more accurate than traditional Wall Street equity analysts' consensus forecasts. We then design a profitable strategy which trades on earnings surprises as benchmarked against Estimize. Finally, we demonstrate that a strategy which exploits the differences between the Wall Street and Estimize expectations prior to earnings dates earns excess returns, particularly among large cap stocks.

Author: Leonard Zacks
Publisher: John Wiley & Sons
ISBN: 1118127765
Category : Business & Economics
Languages : en
Pages : 352

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Book Description
Investment pioneer Len Zacks presents the latest academic research on how to beat the market using equity anomalies The Handbook of Equity Market Anomalies organizes and summarizes research carried out by hundreds of finance and accounting professors over the last twenty years to identify and measure equity market inefficiencies and provides self-directed individual investors with a framework for incorporating the results of this research into their own investment processes. Edited by Len Zacks, CEO of Zacks Investment Research, and written by leading professors who have performed groundbreaking research on specific anomalies, this book succinctly summarizes the most important anomalies that savvy investors have used for decades to beat the market. Some of the anomalies addressed include the accrual anomaly, net stock anomalies, fundamental anomalies, estimate revisions, changes in and levels of broker recommendations, earnings-per-share surprises, insider trading, price momentum and technical analysis, value and size anomalies, and several seasonal anomalies. This reliable resource also provides insights on how to best use the various anomalies in both market neutral and in long investor portfolios. A treasure trove of investment research and wisdom, the book will save you literally thousands of hours by distilling the essence of twenty years of academic research into eleven clear chapters and providing the framework and conviction to develop market-beating strategies. Strips the academic jargon from the research and highlights the actual returns generated by the anomalies, and documented in the academic literature Provides a theoretical framework within which to understand the concepts of risk adjusted returns and market inefficiencies Anomalies are selected by Len Zacks, a pioneer in the field of investing As the founder of Zacks Investment Research, Len Zacks pioneered the concept of the earnings-per-share surprise in 1982 and developed the Zacks Rank, one of the first anomaly-based stock selection tools. Today, his firm manages U.S. equities for individual and institutional investors and provides investment software and investment data to all types of investors. Now, with his new book, he shows you what it takes to build a quant process to outperform an index based on academically documented market inefficiencies and anomalies.

Author: George M. Constantinides
Publisher: Newnes
ISBN: 0444535950
Category : Business & Economics
Languages : en
Pages : 859

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Book Description
In the 11 articles in this first of two parts, top scholars summarize and analyze recent scholarship in corporate finance. Covering subjects from corporate taxes to behavioral corporate finance and econometric issues, their articles reveal how specializations resonate with each other and indicate likely directions for future research. By including both established and emerging topics, Volume 2 will have the same long shelf life and high citations that characterize Volume 1 (2003). Presents coherent summaries of major finance fields, marking important advances and revisions Describes the best corporate finance research created about the 2008 financial crises Exposes readers to a wide range of subjects described and analyzed by the best scholars

Author: Chris Downing
Publisher:
ISBN:
Category : Stock price forecasting
Languages : en
Pages : 68

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Author: Cheng F. Lee
Publisher: Center for PBBEFR & Airiti Press
ISBN: 9866286436
Category : Business & Economics
Languages : en
Pages : 339

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Book Description
Advances in Quantitative Analysis of Finance and Accounting (New Series) is an annual publication designed to disseminate developments in the quantitative analysis of finance and accounting. The publication is a forum for statistical and quantitative analyses of issues in finance and accounting as well as applications of quantitative methods to problems in financial management, financial accounting, and business management. The objective is to promote interaction between academic research in finance and accounting and applied research in the financial community and the accounting profession.