Do Analysts Sacrifice Forecast Accuracy for Informativeness?

References

• Abarbanell J, Lehavy R. Biased forecasts or biased earnings? The role of reported earnings in explaining apparent bias and over/underreaction in analysts' earnings forecasts. J. Accounting Econom. (2003) 36:105–137Crossref, Google Scholar
• Ali A, Klein A, Rosenfeld J. Analysts' use of information about permanent and transitory earnings components in forecasting annual EPS. Accounting Rev. (1992) 67:183–98Google Scholar
• Bae K, Stulz R, Tan H. Do local analysts know more? A cross-country study of the performance of local analysts and foreign analysts. J. Financial Econom. (2008) 88:581–606Crossref, Google Scholar
• Bamber L, Cheon Y. Discretionary management earnings forecast disclosures: Antecedents and outcomes associated with forecast venue and forecast specificity choices. J. Accounting Res. (1998) 36:167–190Crossref, Google Scholar
• Barth M, Hutton A. Analyst earnings forecast revisions and the pricing of accruals. Rev. Accounting Stud. (2004) 9:59–96Crossref, Google Scholar
• Barth M, Kasznik R, McNichols M. Analyst coverage and intangible assets. J. Accounting Res. (2001) 39:1–34Crossref, Google Scholar
• Bartov E, Givoly D, Hayn C. The rewards to meeting or beating earnings expectations. J. Accounting Econom. (2002) 31:173–204Crossref, Google Scholar
• Beyer A. Financial analysts' forecast revisions and managers' reporting behavior. J. Accounting Econom. (2008) 46:334–368Crossref, Google Scholar
• Bhojraj S, Sengupta P. The association between outside directors, institutional investors and the properties of management earnings forecasts. J. Accounting Res. (2005) 43:343–376Crossref, Google Scholar
• Brown L. Analyst forecasting errors: Additional evidence. Financial Analyst J. (1997) 53:81–88Crossref, Google Scholar
• Burgstahler D, Eames M. Earnings management to avoid losses and earnings decreases: Are analysts fooled? Contemporary Accounting Res. (2003) 20:253–294Crossref, Google Scholar
• Clement MB. Analyst forecast accuracy: Do ability, resources, and portfolio complexity matter? J. Accounting Econom. (1999) 27:285–303Crossref, Google Scholar
• Clement MB, Tse SY. Do investors respond to analysts' forecast revisions as if forecast accuracy is all that matters? Accounting Rev. (2003) 78:227–249Crossref, Google Scholar
• Cowen A, Groysberg B, Healy P. Which types of analyst firms are more optimistic? J. Accounting Econom. (2006) 41:119–146Crossref, Google Scholar
• Craig S. Goldman's trading tips reward its biggest clients. Wall Street Journal (2009) August 24). http://online.wsj.com/article/SB125107135585052521.htmlGoogle Scholar
• D'Agostino R, Tietjen G. Approaches to the null distribution of √b1. Biometrika (1973) 60:169–173Google Scholar
• Dechow P, Skinner D. Earnings management: Reconciling the views of accounting academics, practitioners, and regulators. Accounting Horizons (2000) 14:235–250Crossref, Google Scholar
• Dechow P, Hutton A, Kim J, Sloan R. Detecting earnings management: A new approach. J. Accounting Res. (2012) 50:275–334Crossref, Google Scholar
• Dorfman J. Analysts devote more time to selling as firms keep scorecard on performance. Wall Street Journal (1991) October 29):C1Google Scholar
• Eccles R, Crane D. Doing Deals: Investment Banks at Work (1988) (Harvard Business Press, Cambridge, MA) Google Scholar
• Elgers P, Lo M. Reductions in analysts' annual earnings forecast errors using information in prior earnings and security returns. J. Accounting Res. (1994) 32:290–303Crossref, Google Scholar
• Feng M, McVay S. Analysts' incentives to overweight management guidance when revising their short-term earnings forecasts. Accounting Rev. (2010) 85:1617–1646Crossref, Google Scholar
• Feng M, Ge W, Li C, Nagarajan N. Repeated lies? How earnings manipulators guide investors. (2011) . Working paper, University of Pittsburgh, PittsburghGoogle Scholar
• First Call Historical DatabaseUser Guide (2010) (First Call Corporation, Boston) Google Scholar
• Fox J. Learn to play the earnings game (and Wall Street will love you). Fortune (1997) 135:76–81Google Scholar
• Fuller J, Jensen M. Just say no to Wall Street: Putting a stop to the earnings game. J. Appl. Corporate Finance (2002) 14:41–46Crossref, Google Scholar
• Gong G, Louis H, Sun A. Earnings management and firm performance following open-market repurchases. J. Finance (2008) 63:947–986Crossref, Google Scholar
• Groysberg B, Healy P, Maber D. What drives sell-side analyst compensation at high-status investment banks? J. Accounting Res. (2011) 49:969–1000Crossref, Google Scholar
• Gu Z, Wu J. Earnings skewness and analyst forecast bias. J. Accounting Econom. (2003) 35:5–29Crossref, Google Scholar
• Hong H, Kurtzman J, Rifkin G, Griffith V. Transparency: Seeing through the seers of Wall Street. MBA in a Box: Practical Ideas from the Best Brains in Business (2004) (Crown Business, New York) 108–112Google Scholar
• Hong H, Kubik J. Analyzing the analysts: Career concerns and biased earnings forecasts. J. Finance (2003) 58:313–351Crossref, Google Scholar
• Hott J, Termezy M. Avon products (AVP-37.46)—Peer perform: Lowering estimates to low end of 2005 guidance. (2005) . Report, Bear Stearns–Equity Research, July 12, New YorkGoogle Scholar
• Hutton A, Lee L, Shu S. Do managers always know better? An examination of the relative accuracy of management and analyst forecasts. J. Accounting Res. (2012) 50:1217–1244Crossref, Google Scholar
• Hwang L, Jan C, Basu S. Loss firms and analysts' earnings forecast errors. J. Financial Statement Anal. (1996) 1:18–30Google Scholar
• Ip G. Rise in profit guidance dilutes positive surprises. Wall Street Journal (1997) June 23):C1Google Scholar
• Irvine P. Analysts' forecasts and brokerage-firm trading. Accounting Rev. (2004) 79:125–149Crossref, Google Scholar
• Koch A. Financial distress and the credibility of management earnings forecasts. (2003) . Working paper, University of Virginia, CharlottesvilleGoogle Scholar
• Konrad W. Are analysts putting their mouths where the money is? Bus. Week (1989) December 18):118Google Scholar
• Kothari S, Leone A, Wasley C. Performance matched discretionary accruals. J. Accounting Econom. (2005) 39:163–197Crossref, Google Scholar
• Kothari SP. Capital markets research in accounting. J. Accounting Econom. (2001) 31:105–232Crossref, Google Scholar
• Krutick J. Clearing a path to sustained operating levels (part 1 of 2). (2000a) . Report, October 12, Salomon Smith Barney, New YorkGoogle Scholar
• Krutick J. Sharper focus on recurring profits, 3Q results (part 1 of 2). (2000b) . Report, October 19, Salomon Smith Barney, New YorkGoogle Scholar
• Laderman J. Wall Street spin game. Bus. Week (1998) October 5):167Google Scholar
• Lauricella T. Analyst reports pressures of employer's trading. Wall Street Journal (2001) September 4):C1Google Scholar
• Lin H, McNichols M. Underwriting relationships, analysts' earnings forecasts and investment recommendations. J. Accounting Econom. (1998) 25:101–127Crossref, Google Scholar
• Louis H. Earnings management and the market performance of acquiring firms. J. Financial Econom. (2004) 74:121–148Crossref, Google Scholar
• Louis H, Robinson D. Do managers credibly use accruals to signal private information? Evidence from the pricing of discretionary accruals around stock splits. J. Accounting Econom. (2005) 22:249–281Google Scholar
• Matsumoto D. Management's incentives to avoid negative earnings surprises. Accounting Rev. (2002) 77:483–514Crossref, Google Scholar
• McGee S. As stock market surges ahead, “predictable” profits are driving it. Wall Street Journal (1997) May 5):C1Google Scholar
• McGough B. The other shoe drops; sticking with neutral rating. (2000) . Report, October 13, Morgan Stanley Dean Witter–Equity Research, New YorkGoogle Scholar
• McIlree J, Walters G. Pinnacle Holdings, Inc.. (2001) . Tucker Anthony Sutro Capital Markets. Analyst report, May 25Google Scholar
• McNichols M, O'Brien P. Self-selection and analyst coverage. J. Accounting Res. (1997) 35:167–199Crossref, Google Scholar
• Morgenson G. What the sales brochure didn't tell you. Forbes (1997) April 7):90–96Google Scholar
• Sloan R. Do stock prices fully reflect information in accruals and cash flows about future earnings? Accounting Rev. (1996) 71:289–315Google Scholar
• Sonney F. Financial analysts' performance: Sector versus country specialization. Rev. Financial Stud. (2009) 22:2087–2131Crossref, Google Scholar
• Stouffer B, Schumann S. Landry's Restaurants. (2005) . BB&T Capital Markets. Analyst report, March 9Google Scholar
• Vickers M. Ho-hum, another earnings surprise. Bus. Week (1999) May 24):83–84Google Scholar
• Wayman R. Commentary SPX-1222.12. (2005) . Accessed February 15, 2011, http://www.researchstock.com/cgi-bin/rview.cgi?c=commenta&rsrc=RC-20050306-FGoogle Scholar
• Williams P. The relation between a prior earnings forecast by management and analyst response to a current management forecast. Accounting Rev. (1996) 71:103–115Google Scholar
• Xie H. The mispricing of abnormal accruals. Accounting Rev. (2001) 76:357–373Crossref, Google Scholar