The financial analyst forecasting literature: A taxonomy with suggestions for further research

Ramnath, Sundaresh; Rock, Steve; Shane, Philip B.

doi:10.1016/j.ijforecast.2007.12.006

Cited by 583 publications

(332 citation statements)

References 221 publications

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“…The higher percentage of positive versus negative sentences is consistent with findings that show an optimistic bias in analyst forecasts and recommendations (Ramnath et al 2008). Next, the naïve Bayes algorithm ''learns'' the parameters of the prediction model from the training dataset by solving the maximum likelihood 10 The category of brokerage disclosure includes explanations of stock-rating systems, disclosures regarding conflicts of interest, analyst certifications, and other disclosures required by regulations, as well as disclaimers, glossaries, and descriptions of the brokerage or research firm.…”

Section: Implementation Of the Naïve Bayes Machine Learning Approach supporting

confidence: 87%

“…Despite the apparent importance of analyst report text, the extant literature largely overlooks it and focuses almost exclusively on analysts' quantitative research outputs (Ramnath, Rock, and Shane 2008;Bradshaw 2011). This imbalance in the research effort might prevent the literature from developing a comprehensive understanding of the analysts' information role (Bradshaw 2011).…”

Section: Introductionmentioning

confidence: 99%

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Evidence on the Information Content of Text in Analyst Reports

Huang

Zang

Zheng

2014

The Accounting Review

357

193

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ABSTRACT:We document that textual discussions in a sample of 363,952 analyst reports provide information to investors beyond that in the contemporaneously released earnings forecasts, stock recommendations, and target prices, and also assist investors in interpreting these signals. Cross-sectionally, we find that investors react more strongly to negative than to positive text, suggesting that analysts are especially important in propagating bad news. Additional evidence indicates that analyst report text is more useful when it places more emphasis on nonfinancial topics, is written more assertively and concisely, and when the perceived validity of other information signals in the same report is low. Finally, analyst report text is shown to have predictive value for future earnings growth in the subsequent five years.

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Section: Implementation Of the Naïve Bayes Machine Learning Approach supporting

confidence: 87%

Section: Introductionmentioning

confidence: 99%

Evidence on the Information Content of Text in Analyst Reports

Huang

Zang

Zheng

2014

The Accounting Review

357

193

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show abstract

“…Analysts also produce biased recommendations and target prices on average (Bradshaw, 2011;Mokoaleli-Mokoteli, Taffler and Agarwal, 2009), but despite this, professional investors still rely on analysts' outputs (Barker, 1998;Clement and Tse, 2003) and are well aware of potential biases (Clatworthy, 2005). Brown (1993), Ramnath, Rock and Shane (2008) and Bradshaw (2011) provide comprehensive reviews of the sell-side analysts' literature.…”

Section: Information Sources Used By Professional Equity Investorsmentioning

confidence: 99%

Who Uses Financial Reports and for What Purpose? Evidence from Capital Providers

Cascino

Clatworthy

Osma

et al. 2014

Accounting in Europe

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We review the academic literature on the use of financial reporting information by capital providers. We classify our findings by investor type and by information objective. While most capital providers use accounting information, our survey indicates that they do so in a variety of ways with financial reporting information competing with other sources of information. We also find that information intermediaries are influential in both credit and equity markets, making the identification of a typical target 'user' inherently difficult. Our main findings question the underlying objective of the Conceptual Framework to guide the development of standards for general-purpose financial statements to provide a typical knowledgeable investor with a true and fair view about the reporting entity. Finally, we identify gaps in the literature and suggest areas where future research can help inform important academic and policy debates.

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“…1 While a large stream of literature has examined the impact of analysts' forecasts, these studies almost exclusively focus on after-tax (EPS) earnings (Ramnath et al (2008) provides one such review).…”

Section: Signed: Landon Mark Maulermentioning

confidence: 99%

The Role of Additional Non-EPS Forecasts: Evidence Using Pre-Tax Forecasts

Mauler¹

2014

SSRN Journal

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The financial analyst forecasting literature: A taxonomy with suggestions for further research

Cited by 583 publications

References 221 publications

Evidence on the Information Content of Text in Analyst Reports

Evidence on the Information Content of Text in Analyst Reports

Who Uses Financial Reports and for What Purpose? Evidence from Capital Providers

The Role of Additional Non-EPS Forecasts: Evidence Using Pre-Tax Forecasts

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