TY - JOUR
T1 - The information content of financial analysts' forecasts of earnings. Some evidence on semi-strong inefficiency
AU - Givoly, Dan
AU - Lakonishok, Josef
N1 - Funding Information:
The authors are extremely grateful to the referee and to Ross Watts and Jerold Zimmerman for their constructive criticism and helpful suggestions. This research was supported by the Israel Institute of Business Research, Tel-Aviv University.
PY - 1979/12
Y1 - 1979/12
N2 - The paper assesses the information content of revisions in financial analysts' forecasts of earnings by analyzing the relation between the direction of these revisions and stock price behavior. Abnormal returns during the months surrounding the revisions in analysts' forecasts are computed and evaluated. The results strongly indicate that information on revisions in forecasts of earnings per share is valuable to investors. It is also suggested that market reaction to the disclosure of analysts' forecasts is relatively slow and gives rise to potential abnormal returns to investors who act upon this type of publicly available information.
AB - The paper assesses the information content of revisions in financial analysts' forecasts of earnings by analyzing the relation between the direction of these revisions and stock price behavior. Abnormal returns during the months surrounding the revisions in analysts' forecasts are computed and evaluated. The results strongly indicate that information on revisions in forecasts of earnings per share is valuable to investors. It is also suggested that market reaction to the disclosure of analysts' forecasts is relatively slow and gives rise to potential abnormal returns to investors who act upon this type of publicly available information.
UR - http://www.scopus.com/inward/record.url?scp=0001048384&partnerID=8YFLogxK
U2 - 10.1016/0165-4101(79)90006-5
DO - 10.1016/0165-4101(79)90006-5
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AN - SCOPUS:0001048384
SN - 0165-4101
VL - 1
SP - 165
EP - 185
JO - Journal of Accounting and Economics
JF - Journal of Accounting and Economics
IS - 3
ER -