Abstract
We study the relation between analysts’ target price revisions and recent market returns, excess stock returns, and other analysts’ target price revisions. Empirical results show that, after controlling for earnings forecast and recommendation revisions, target price revisions are associated with each of these information sources. We also find that target price revisions are more sensitive to negative than to positive excess stock returns. We conjecture that firms’ tendency to withhold bad news, while releasing good news promptly, drives this effect and, using proxies for firms’ withholding of bad news, we report evidence supporting this hypothesis.
| Original language | English |
|---|---|
| Pages (from-to) | 37-61 |
| Number of pages | 25 |
| Journal | Accounting and Business Research |
| Volume | 48 |
| Issue number | 1 |
| Early online date | 5 Oct 2016 |
| DOIs | |
| Publication status | Published - 2 Jan 2018 |
Keywords
- excess stock returns
- target price revisions
- withholding bad news
Fingerprint
Dive into the research topics of 'Modelling analysts’ target price revisions following good and bad news?'. Together they form a unique fingerprint.Profiles
-
Dr Tuan Q Ho
- School of Accounting and Finance - Senior Lecturer in Finance and Accounting
Person: Academic