RT Journal Article
SR Electronic
T1 Efficiency of Event-Induced Abnormal Revisions of Analysts' Earnings Forecasts
JF The Journal of Investing
FD Institutional Investor Journals
SP 42
OP 53
DO 10.3905/joi.2007.694761
VO 16
IS 3
A1 Maria H. Sanchez
A1 Zaher Z Zantout
YR 2007
UL https://pm-research.com/content/16/3/42.abstract
AB We examine the efficiency of event-induced abnormal revisions of analysts' earnings forecasts using four samples of major corporate investment and dividend decisions. We find that they may fail to incorporate new information, and they may even be inconsistent with rationality. Researchers should be careful when using event-induced revisions of analysts' earnings forecasts to draw research conclusions.TOPICS: Equity portfolio management, security analysis and valuation, portfolio construction