The Effect of Labor Strikes on Security Analysts' Forecast Superiority and on the Association between Risk-Adjusted Stock Returns and Unexpected Earnings
16 Pages Posted: 18 Apr 2008
Abstract
This paper empirically examines whether labor strikes affect the forecasting and information content of quarterly earnings numbers. We address two issues regarding financial analyst forecast (FAF) superiority: whether FAF superiority increases when a strike occurs and if so, whether the increase in FAF superiority is sustained immediately after the strike ends. We also examine two issues regarding information content: whether strikes affect the coefficient mapping unexpected earnings into stock prices and whether strikes affect the variance of stock price changes. We suggest that strikes affect both the forecasting and information content of quarterly earnings numbers.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
By Lawrence D. Brown, Robert Hagerman, ...
-
An Evaluation of Alternative Proxies for the Market's Assessment of Unexpected Earnings
By Lawrence D. Brown, Robert Hagerman, ...
-
Experience, Expertise and the Forecasting Performance of Security Analysts
By John Jacob, Thomas Z. Lys, ...
-
The Superiority of Analyst Forecasts as Measures of Expectations: Evidence from Earnings
-
A Re-Examination of Financial Analysts' Differential Earnings Forecast Accuracy
By Praveen Sinha, Lawrence D. Brown, ...
-
An Information Interpretation of Financial Analyst Superiority in Forecasting Earnings
-
By Peter A. Brous and Philip B. Shane
-
The Effect of the External Accountant's Review on the Timing of Adjustments to Quarterly Earnings
By Michael Ettredge, Dan T. Simon, ...
-
Naive Investors, Earnings Announcements, and Stock Price Movements