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

来源：

INVESTMENT ANALYSTS JOURNAL | 2023年 / 52卷 / 04期

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

页码：335 / 348

页数：14