The information content of financial analysts' forecasts of earnings. Some evidence on semi-strong inefficiency

Dan Givoly*, Josef Lakonishok

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

238 Scopus citations

Abstract

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.

Original languageEnglish
Pages (from-to)165-185
Number of pages21
JournalJournal of Accounting and Economics
Volume1
Issue number3
DOIs
StatePublished - Dec 1979

Funding

FundersFunder number
Israel Institute of Business Research
Tel-Aviv University

    Fingerprint

    Dive into the research topics of 'The information content of financial analysts' forecasts of earnings. Some evidence on semi-strong inefficiency'. Together they form a unique fingerprint.

    Cite this