Biased Forecasts or Biased Earnings? The Role of Reported Earnings in Explaining Apparent Bias and Over/Underreaction in Analysts' Earnings Forecasts

By Jeffery Abarbanell, Reuven Lehavy. 2003

405 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/1afed59c0d111873da407e12f8f4d5399ca97a20

How researchers see this paper

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

In Accounting

1. Martin Walker
2. John E. Core
3. W. Guay
4. Vasiliki Athanasakou
5. Eric C. So
6. G. Iatridis
7. Christian Leuz
8. K. Hussainey

In Finance

1. Martin Walker
2. John E. Core
3. W. Guay
4. G. Iatridis
5. Eric C. So
6. S. Rock
7. Theodore H. Goodman
8. Philip B. Shane

In Strategy and Management

1. Martin Walker
2. John E. Core
3. Vasiliki Athanasakou
4. Eric C. So
5. S. Rock
6. Christian Leuz
7. W. Guay
8. Sundaresh Ramnath

Citations in the corpus

• Analysts' Weighting of Private and Public Information (2006, neutral): “Evidence that both MSE and MAE are reasonable criteria for forecast accuracy is provided by Abarbanell and Lehavy (2003), Cohen and Lys (2003), Gu and Wu (2003) and Basu and Markov (2004).”
• Does Weak Governance Cause Weak Stock Returns? An Examination of Firm Operating Performance and Investors' Expectations (2006, background): “Recent literature suggests that managers bias earnings or guide analysts’ forecasts in an attempt to meet the expectations of the market (e.g., Abarbanell and Lehavy (2003) and Richardson, Teoh, and Wysocki (2004)).”
• Influential Observations and Inference in Accounting Research (2019, neutral): “Abarbanell and Lehavy (2003, p. 114) highlight the issue that “many studies implicitly limit observations in their samples to those that are less extreme by choosing ostensibly symmetric rules for eliminating them, such as winsorization or truncations of values greater than a given absolute magnitud”
• Trade Generation, Reputation and Sell-Side Analysts (2005, background): “As a final robustness check, to account for the forecast error distributional issues addressed by Abarbanell & Lehavy (2003) I calculate non-parametric estimates of consensus optimism differences.”
• Implications of survival and data trimming for tests of market efficiency (2005, neutral): “4See Abarbanell and Lehavy (2003) and Cohen and Lys (2003) for recent examples of research examining methodological problems that arise in drawing inferences when dealing with skewed distributions of earnings and analyst forecast error data.”