{"title":"Measuring inconsistency in analyst reports","authors":"Jun Wang , Xing Chen","doi":"10.1016/j.econlet.2024.112152","DOIUrl":null,"url":null,"abstract":"<div><div>This study improves existing methods for measuring inconsistency in analyst reports by incorporating the standard deviations of standardized earnings forecasts, target prices, stock recommendations, and textual sentiment. We find that report inconsistency is driven by forecast complexity and analysts’ independence, with inconsistent reports exhibiting higher forecast errors and stronger short-term market reactions. Moreover, we reconcile conflicting conclusions in the literature, showing that different methods of measuring report inconsistency lead to varying research outcomes.</div></div>","PeriodicalId":11468,"journal":{"name":"Economics Letters","volume":"247 ","pages":"Article 112152"},"PeriodicalIF":2.1000,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Economics Letters","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0165176524006360","RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"ECONOMICS","Score":null,"Total":0}
引用次数: 0
Abstract
This study improves existing methods for measuring inconsistency in analyst reports by incorporating the standard deviations of standardized earnings forecasts, target prices, stock recommendations, and textual sentiment. We find that report inconsistency is driven by forecast complexity and analysts’ independence, with inconsistent reports exhibiting higher forecast errors and stronger short-term market reactions. Moreover, we reconcile conflicting conclusions in the literature, showing that different methods of measuring report inconsistency lead to varying research outcomes.
期刊介绍：
Many economists today are concerned by the proliferation of journals and the concomitant labyrinth of research to be conquered in order to reach the specific information they require. To combat this tendency, Economics Letters has been conceived and designed outside the realm of the traditional economics journal. As a Letters Journal, it consists of concise communications (letters) that provide a means of rapid and efficient dissemination of new results, models and methods in all fields of economic research.
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