Do financial analysts publish long-term forecasts in response to firms’ overinvestments?

IF 1.2 4区经济学 Q3 BUSINESS, FINANCE Investment Analysts Journal Pub Date : 2023-05-04 DOI:10.1080/10293523.2023.2198765

Su Young Choi, Minyoung Noh, Jaimin Goh, Sooin Kim

引用次数: 0

Abstract

ABSTRACT This study examines the relationship between analysts issuing long-term earnings forecasts and firms overinvestment. This research demonstrates that a positive relationship exists between analysts issuing long-term forecasts and firms overinvesting. The relationship between analysts issuing a long-term forecast and firms overinvesting is more significant where asymmetry of information exists. Additionally, we find that a positive relation between overinvestments and long-term analyst forecast publications is more pronounced for firms covered by competent analysts. Finally, analysts benefit from promotion by issuing long-term forecasts in response to the firms’ overinvestment. These findings contribute to the related literature by confirming that investment decisions are considered important in analysts’ long-term earnings forecasts.

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来源期刊

Investment Analysts Journal BUSINESS, FINANCE-

CiteScore

1.90

自引率

11.10%

发文量

期刊介绍： The Investment Analysts Journal is an international, peer-reviewed journal, publishing high-quality, original research three times a year. The journal publishes significant new research in finance and investments and seeks to establish a balance between theoretical and empirical studies. Papers written in any areas of finance, investment, accounting and economics will be considered for publication. All contributions are welcome but are subject to an objective selection procedure to ensure that published articles answer the criteria of scientific objectivity, importance and replicability. Readability and good writing style are important. No articles which have been published or are under review elsewhere will be considered. All submitted manuscripts are subject to initial appraisal by the Editor, and, if found suitable for further consideration, to peer review by independent, anonymous expert referees. All peer review is double blind and submission is via email. Accepted papers will then pass through originality checking software. The editors reserve the right to make the final decision with respect to publication.