2011 Volume 19 Issue 1 Pages 3-15
This paper investigates the effect of the management earnings forecast issuance on analysts' earnings forecast. It finds that the management earnings forecast issuance increase the accuracy of analysts' earnings forecast and decrease analysts' forecast dispersion. It also shows that analyst' earnings forecast revisions are associated with the accuracy of prior forecasts by management when the surprise of management forecast is negative. These results provide the valuable evidence for the investors to use analysts' information.
