Do financial analysts publish long-term forecasts in response to firms' overinvestments?

被引:0
作者
Choi, Su Young [1 ]
Noh, Minyoung [2 ]
Goh, Jaimin [1 ]
Kim, Sooin [3 ]
机构
[1] Inha Univ, 100 Inha ro, Incheon 22212, South Korea
[2] Calif State Univ Los Angeles, 5151 State Univ Dr, Simpson Tower F513, Los Angeles, CA 90032 USA
[3] Konkuk Univ, 120 Neungdong ro, Seoul 05029, South Korea
关键词
overinvestment; financial analyst; long-term earnings forecast; CROSS-SECTION; INVESTMENT; EXPECTATIONS; DISCLOSURE; COST; LIQUIDITY; RETURNS; ABILITY; LEAD;
D O I
10.1080/10293523.2023.2198765
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
This study examines the relationship between analysts issuing long-term earnings forecasts and firms overinvestment. This research demonstrates that a positive relationship exists between analysts issuing long-term forecasts and firms overinvesting. The relationship between analysts issuing a long-term forecast and firms overinvesting is more significant where asymmetry of information exists. Additionally, we find that a positive relation between overinvestments and long-term analyst forecast publications is more pronounced for firms covered by competent analysts. Finally, analysts benefit from promotion by issuing long-term forecasts in response to the firms' overinvestment. These findings contribute to the related literature by confirming that investment decisions are considered important in analysts' long-term earnings forecasts.
引用
收藏
页码:335 / 348
页数:14
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