Do Investors Respond to Analysts' Forecast Revisions as if Forecast Accuracy Is All That Matters?
By Michael B. Clement, Senyo Tse. 2003
405 citations recorded by the source corpus.
Subfields: Accounting, Finance, Management Science and Operations Research
View Paper: https://www.semanticscholar.org/paper/105fde936a864598cb4c9d0c82e1711a1724a7c4
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Citations in the corpus
- Political contributions and analyst behavior (2015, neutral): “11 Prior research finds that market reaction to analyst forecast revisions on average increases with the analyst’s forecast accuracy, although the market may not fully incorporate information about analyst accuracy (Clement and Tse 2003).”
- The Financial Analyst Forecasting Literature: A Taxonomy with Suggestions for Further Research (2008, neutral): “Clement and Tse (2003) find that the market weights the forecast horizon and the number of days elapsed since the last forecast variables positively when responding to individual analysts' forecast revisions, whereas an accuracy prediction model weights them negatively.”
- Inside the 'Black Box' of Sell-Side Financial Analysts (2014, neutral): “Later research has investigated the informativeness or investment value of analysts’ earnings forecasts or stock recommendations (Clement and Tse, 2003; Francis and Soffer, 1997; Womack, 1996).”
- On the Information Role of Stock Recommendation Revisions (2009, background): “Authors recognize analyst herding in their earnings forecasts and in other reports, and often suggest it is a response to career concerns (Trueman, 1994; Graham, 1999; Scharfstein and Stein, 1990; Welch, 2000; Hong et al., 2000; Hong and Kubik, 2003; Gleason and Lee, 2003; Clement and Tse, 2003).”
- A New Approach to Predicting Analyst Forecast Errors: Do Investors Overweight Analyst Forecasts? (2013, background): “…find that security prices move in the direction of forecast revisions and recommendation changes (e.g., Givoly and Lakonishok, 1979; Lin and McNichols, 1998; Clement and Tse, 2003; Ivkovic and Jegadeesh, 2004; Jegadeesh, Kim, Krische, and Lee, 2004; Frankel, Kothari, and Weber, 2006; Kirk, 2011).”
- Do online reviews affect product sales? The role of reviewer characteristics and temporal effects (2008, neutral): “In the finance literature, analyst quality is measured in two way s: analyst reputation [7, 20, 25, 34] and analy st exposure to the comm unity [8].”
- Analysts’ Forecasts and Asset Pricing: A Survey (2016, neutral): “For instance, Clement and Tse (2003) find that investors respond more strongly to longer horizon forecasts, which are known to be less accurate, than shorter horizon forecasts because investors are generally more uncertain about earnings earlier in the year.”
- Are analysts’ earnings forecasts more accurate when accompanied by cash flow forecasts? (2009, methodology): “Prior studies that use range-adjusted forecast errors (e.g., Clement and Tse 2003, 2005; Brown and Hugon 2007) mainly do so to compare regression coefficients across two models—one that models earnings forecast accuracy and one that models market reactions to analysts’ forecasts.”
- Analyst Career Concerns, Effort Allocation, and Firms’ Information Environment (2018, neutral): “These values are comparable to those in prior studies (Clement and Tse, 2005; Clement, Koonce, and Lopez, 2007; Bradley, Gokkaya, and Liu, 2016). Panel B of Table 1 presents firm-year-mean-adjusted values. Clement (1999) finds that removing firm-year effects from dependent and independent variables ”