Are revisions of security analysts' earnings ...

Description

Citation

Title Are revisions of security analysts' earnings forecasts rational? Canadian evidence
Author(s) Sean M. Hennessey
Date 1994
Volume 3
Issue 2
Start page 205
Abstract Research conducted considers the quality of security analysts' earnings forecasts by testing the rationality of forecast revisions for Canadian companies. It appears that when making small positive revisions, analysts overreact; in subsequent periods, forecasts are revised downward. Large positive revisions are followed by significant positive revisions, suggesting underreaction by analysts. Overall, for positive revisions, while both modest over- and underreaction is evident, neither tendency is pronounced. For negative revisions, regardless of their size, significant underreaction is suggested; when initially forecasting earnings decreases, analysts appear to underestimate the decline in earnings. This is consistent with the view that forecasts are optimistic.

Using APA 6th Edition citation style.

[Page generation failure. The bibliography processor requires a browser with Javascript enabled.]

Times viewed: 167

Adding this citation to "My List" will allow you to export this citation in other styles.