Investors, analysts, and other stakeholders rely on a slew of materials when measuring how businesses perform. Some of those materials are issued directly by company executives, and they typically include a particularly important set of documents: management earnings forecasts. Unsurprisingly, management forecasts do not always perfectly predict actual ... Read More

Investors, analysts, and other stakeholders rely on a slew of materials when measuring how businesses perform. Some of those materials are issued directly by company executives, and they typically include a particularly important set of documents: management earnings forecasts. Unsurprisingly, management forecasts do not always perfectly predict actual ... Read More

Higher-quality accounting information results in better resource allocation within industries, Yue Zheng from HKUST and her coauthors have established. Access to accurate accounting data reduces “friction” in information flows, providing external parties with a complete picture of productivity that can improve investment decisions. Productivity measures ... Read More

The list of analyst research outputs has been expanding over the past decades, and one prominent analyst research output that has become increasingly important is capital expenditure (capex) forecasts. Yet we know little about the effects of capex forecasts, in particular, whether the information conveyed in capex forecasts is useful to investors, and more ... Read More

Financial analysts are important information intermediaries in capital markets. Traditional research outputs of analysts, such as buy/sell recommendations and EPS forecasts, have been the mainstream focus of market participants. In recent years, analyst forecasts of capital expenditures (capex) have become increasingly prevalent—roughly 70 percent of the US ... Read More

An earnings announcement – a public statement of a company’s profitability, usually issued on a quarterly basis – provides useful information to assess peer firms’ expected cash flows, as well as the uncertainty regarding their expected cash flows. While there is a large body of research on whether there are intra-industry information transfers around ... Read More