The Walk-down to Beatable Analyst Forecasts: The Role of Equity Issuance and Insider Trading Incentives*

By Scott A. Richardson, Siew Hong Teoh, Peter D. Wysocki. 2004

846 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/933069499a7b8b1951cd3ac76dc1b1c3ae24582a

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Citations in the corpus

Shared analyst coverage: Unifying momentum spillover effects (2018, background): “Also, the empirical finding of a walkdown to beatable analyst forecasts ( Richardson et al., 2004 ) suggests that other agency problems may also reduce the responsiveness of forecasts to news.”
Do Analysts Herd? An Analysis of Recommendations and Market Reactions (2010, neutral): “The compensation function (3) is similar to that in Zitzewitz (2001) and Chen and Jiang (2006), where analysts' compensation is specified as a function of forecast accuracy.”
The Market Reward for Achieving Analyst Earnings Expectations: Does Managing Expectations or Earnings Matter? (2011, neutral): “Richardson et al. (1999) provide evidence of a switch in analyst earnings forecasts from being upward to downward biased as the”
Bias in the tone of forward‐looking narratives (2010, background): “This evidence suggests that analysts regularly issue optimistically biased earnings forecasts at the start of a reporting cycle and then ‘walk down’ the forecast to beatable levels (Richardson et al., 2004).”
Accounting Anomalies and Fundamental Analysis: A Review of Recent Research Advances (2010, background): “There are many studies that suggest that analysts’ forecasts are biased at various time horizons (see, e.g., Dechow and Sloan 1997; Richardson et al. 2003; and Easton and Sommers, 2007).”
The Effect of Cash Flow Forecasts on Accrual Quality and Benchmark Beating (2011, methodology): “Finally, we augment the variables from Matsumoto with a dummy variable for equity issuance (Issue), given the findings of Richardson et al. (2004), who link expectation walk-downs to equity issuances.”
Bundled Forecasts in Empirical Accounting Research (2013, neutral): “The second factor is the stylized fact that analysts’ estimates tend to begin at optimistic levels, and then decline over time to pessimistic levels (Matsumoto 2002; Richardson et al. 2004).”
Information interpretation or information discovery: which role of analysts do investors value more? (2012, positive): “004, consistent with prior research that analysts are more likely to ‘‘walk down’’ their forecasts as they approach fiscal period end (Richardson et al. 2004).”
The Economic Virtues of SRI and CSR (2007, methodology): “Blank and Daniel reported that an equal-weighted eco-efficiency portfolio delivered somewhat higher Sharpe ratios than the S&P 500 Index during the 1997–2001 period. Finally, Guerard (1997) used the social performance database of Kinder, Lydenberg, Domini & Company and concluded that portfolios deri”
Internal Control Weakness and Cost of Equity: Evidence from SOX Section 404 Disclosures (2007, background): “We also add a variable measuring the horizon of the forecast since it is has been shown that analysts are progressively less optimistic as they get closer to the annual earnings announcements (Richardson et al. 2004).”