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- W141350258 abstract "This paper examines the informativeness of analyst forecast revisions for RD Diether, Malloy and Scherbina (2002)) argue that analysts are less willing to disclose unfavorable opinions than favorable opinions, and this induces an optimistic bias in consensus forecasts that increases in the degree of earnings uncertainty. Extending this argument, I predict that, relative to downward revision, upward revision is more correlated with future earnings and helps price reflect future earnings news faster, especially in high (versus low) R&D firms whose earnings is more uncertain. The evidence is consistent with the predictions. Furthermore, the return differentials between high and low R&D portfolios (as found in Chan, Lakonishok and Sougiannis (2001)) are mitigated in the firms with upward revisions. These results provide a better understanding of the properties of forecast revisions and their implications for stock pricing." @default.
- W141350258 created "2016-06-24" @default.
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- W141350258 date "2005-01-01" @default.
- W141350258 modified "2023-09-26" @default.
- W141350258 title "R&D Expenditures and the Informativeness of Analyst Forecast Revisions" @default.
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