The Effect of Beating and Missing Analysts' Forecasts on the Information Content of Unexpected Earnings

By Thomas J. Lopez, Lynn Rees. 2002

263 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/1934e186a0353b59af00fa1a0dadde50ef9636d0

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Finance

In Strategy and Management

Citations in the corpus

On Regression Analysis with Data Cleaning via Trimming, Winsorization, and Dichotomization (2005, methodology): “Different truncation procedures have been used for this purpose; see, for example, Degeorge et al. (1999), Kinney et al. (2002), and Lopez and Rees (2002).”
Earnings management or forecast guidance to meet analyst expectations? (2009, unknown): “Comparing the market penalty for missing analyst expectations to the premium for achieving analyst expectations, Lopez and Rees (2002) find that the former is significantly higher than the latter and that firms that consistently achieve analyst forecasts have a significantly higher earnings…”
Beating Earnings Benchmarks and the Cost of Debt (2008, background): “and McNichols (2002), and Lopez and Rees (2002) find that firms meeting or beating analysts’ forecasted earnings have higher abnormal returns and higher earnings response coefficients than”
The Market Reward for Achieving Analyst Earnings Expectations: Does Managing Expectations or Earnings Matter? (2011, background): “…the earnings benchmark and that the market expects a certain degree of earnings or expectations management to this end (Burgstahler and Dichev 1997, Lopez and Rees 2002, Das and Zhang 2003, Graham et al. 2005, Burgstahler and Eames 2006), we focus our tests on firms that just meet or beat analyst…”
Analyst Information Discovery and Interpretation Roles: A Topic Modeling Approach (2018, unknown): “These values are consistent with prior literature (e.g., Lopez and Rees 2002), but are likely too low to be considered as a reasonable price-to-earnings ratio for our sample.”
Analysts' Conflict of Interest and Biases in Earnings Forecasts (2007, unknown): “In a related strand of research, Kasznik and McNichols (2002), Lopez and Rees (2002) find that firms that consistently surpass earnings expectations are rewarded with high returns and valuations.”
Fraud Risk Factor Of The Fraud Triangle Assessing The Likelihood Of Fraudulent Financial Reporting (2011, unknown): “Lopez and Rees (2002) demonstrated that earnings multiple applied to unexpected earnings (i.e., realized earnings exceeding analysts’ earnings forecasts) is significantly greater than that to negative unexpected earnings.”