Abstract
Using the sample of all firm-quarter observations between 2000 and 2010, we study the effects of information asymmetry on security analysts' forecast properties. Our results show that as accounting information provides less accurate signs on firms' prospects due to greater information asymmetry, the demand for private information increases after the release of quarterly earnings. As a result, analysts acquire more costly private information, avoiding less costly public information after the quarterly earnings announcements.
| Original language | English |
|---|---|
| Pages (from-to) | 523-530 |
| Number of pages | 8 |
| Journal | Actual Problems of Economics |
| Volume | 144 |
| Issue number | 6 |
| State | Published - 2013 Jan 1 |
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Keywords
- Analysts
- Barron model
- Information asymmetry
Cite this
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Effects of information asymmetry on analysts' forecast properties. / Cho, Joong-Seok.
In: Actual Problems of Economics, Vol. 144, No. 6, 01.01.2013, p. 523-530.Research output: Contribution to journal › Article
TY - JOUR
T1 - Effects of information asymmetry on analysts' forecast properties
AU - Cho, Joong-Seok
PY - 2013/1/1
Y1 - 2013/1/1
N2 - Using the sample of all firm-quarter observations between 2000 and 2010, we study the effects of information asymmetry on security analysts' forecast properties. Our results show that as accounting information provides less accurate signs on firms' prospects due to greater information asymmetry, the demand for private information increases after the release of quarterly earnings. As a result, analysts acquire more costly private information, avoiding less costly public information after the quarterly earnings announcements.
AB - Using the sample of all firm-quarter observations between 2000 and 2010, we study the effects of information asymmetry on security analysts' forecast properties. Our results show that as accounting information provides less accurate signs on firms' prospects due to greater information asymmetry, the demand for private information increases after the release of quarterly earnings. As a result, analysts acquire more costly private information, avoiding less costly public information after the quarterly earnings announcements.
KW - Analysts
KW - Barron model
KW - Information asymmetry
UR - http://www.scopus.com/inward/record.url?scp=84923767413&partnerID=8YFLogxK
M3 - Article
AN - SCOPUS:84923767413
VL - 144
SP - 523
EP - 530
JO - Actual Problems of Economics
JF - Actual Problems of Economics
SN - 1993-6788
IS - 6
ER -