Three essays on financial analysis
Date of Issue2010
College of Business (Nanyang Business School)
This thesis includes three essays on financial analysts. We propose an ex ante measure of an analyst's ability to produce private information (PPI), based on how little the analyst's forecast revisions are correlated with prior stock price changes. We find that earnings forecasts issued by analysts with higher PPI are more accurate, timelier, bolder, and have greater stock price impacts. We also find evidence that, compared to other ex ante measures of analyst ability, PPI is incrementally useful and has the greatest power in identifying superior analysts. In addition, using PPI, we find that Regulation Fair Disclosure not only equalizes the access of analysts to managerial information, but also encourages their private information production.
DRNTU::Business::Accounting::Financial statements and analysis
Nanyang Technological University