Correlated forecast errors
Article Abstract:
A study was conducted to investigate independent and correlated information gathering by investors and to gauge whether investors' information-gathering efforts overlap to subsequently cause correlated errors assuming these investors have the power to choose what data to gather about an organization. A model was constructed where informed investors select the correlation between the error terms in their personal information. Data indicates that the selected correlation will fall between the extremes of complete independent information gathering and total correlated information gathering. The data also furnished one explanation for why individual earnings forecast errors are correlated and how that correlation arises endogenously.
Publication Name: Journal of Accounting Research
Subject: Business
ISSN: 0021-8456
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Effect of investor speculation on earnings management
Article Abstract:
The influence of the speculator's information on earnings management behavior, quality of reported earnings, and stock price efficiency are examined. Predictions and interpretations are provided for short window event studies and long-window association studies.
Publication Name: Journal of Accounting Research
Subject: Business
ISSN: 0021-8456
Year: 2004
User Contributions:
Comment about this article or add new information about this topic:
Imperfect information and credible communication
Article Abstract:
The affect of quality or relevance of sender information on the quality of receiver information is investigated. The endowment of the sender with summary or coarse information leads to maximization of the receiver's information.
Publication Name: Journal of Accounting Research
Subject: Business
ISSN: 0021-8456
Year: 2001
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Asset-backed arenas. An investor relations nightmare. Scoring as hockey's CFO
- Abstracts: Capital structure and corporate control: the effect of antitakeover statutes on firm leverage. The expiration of IPO share lockups
- Abstracts: The effect of EDGAR on the market reaction to 10-K fillings. Information systems, incentives and the timing of investments
- Abstracts: CEO compensation: the role of individual performance evaluation. Financial accounting information and corporate governance
- Abstracts: Institutional investors and executive compensation. Dividend changes and future profitability. Internal monitoring mechanisms and CEO turnover: a long-term perspective