Download this Paper Open PDF in Browser

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  

Lawrence D. Brown

Temple University - Department of Accounting

Mark Zmijewski

University of Chicago - Accounting

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

Brown, Lawrence D. and Zmijewski, Mark, The Effect of Labor Strikes on Security Analysts' Forecast Superiority and on the Association between Risk-Adjusted Stock Returns and Unexpected Earnings. Contemporary Accounting Research, Vol. 4, No. 1, 1987. Available at SSRN: https://ssrn.com/abstract=1121422

Lawrence D. Brown (Contact Author)

Temple University - Department of Accounting ( email )

Philadelphia, PA 19122
United States

Mark Zmijewski

University of Chicago - Accounting ( email )

1101 East 58th Street
Chicago, IL 60637-1561
United States

Paper statistics

Downloads
58
Rank
310,744
Abstract Views
608