Effects of information asymmetry on analysts' forecast properties

Research output: Contribution to journalArticle

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 languageEnglish
Pages (from-to)523-530
Number of pages8
JournalActual Problems of Economics
Volume144
Issue number6
StatePublished - 2013 Jan 1

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Asymmetry of information
Analysts' forecasts
Private information
Information asymmetry
Earnings announcements
Accounting information
Security analysts
Public information
Analysts

Keywords

  • Analysts
  • Barron model
  • Information asymmetry

Cite this

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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.",
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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 journalArticle

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