Evidence that Analyst Following and Institutional Ownership Accelerate the Pricing of Future Earnings

By Benjamin C. Ayers, R. Freeman. 2003

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The Impact of SFAS No. 131 Business Segment Data on the Market's Ability to Anticipate Future Earnings (2005, background): “(2003), Ayres and Freeman (2003), Jiambalvo et al.”
On the Relationship between Analyst Reports and Corporate Disclosures: Exploring the Roles of Information Discovery and Interpretation (2010, background): “For example, Ayers and Freeman (2003) find that when annual returns are regressed on contemporaneous and future earnings, the coefficient on contemporaneous earnings decreases with analysts following, while that on future earnings increases with analysts following.”
Beating Earnings Benchmarks and the Cost of Debt (2008, background): “Similarly, in a case study of L.A. Gear, DeAngelo et al. (2002) find that most of L.A. Gear’s bank credit agreements have minimum earnings requirements, such as requiring L.A. Gear to report positive quarterly earnings.5 In contrast, beating last year’s earnings indicates earnings 5 DeAngelo et al. ”
Investor Information Demand: Evidence from Google Searches Around Earnings Announcements (2012, unknown): “Thus, model (4) is a variation of the future earnings response coefficient (FERC) models used to measure factors associated with current prices incorporating future earnings news (Lundholm and Myers [2002], Gelb and Zarowin [2002], Ayers and Freeman [2003]).”