Analyst Responsiveness and the Post-Earnings-Announcement Drift

44 Pages Posted: 2 Feb 2005 Last revised: 6 Sep 2011

See all articles by Yuan Zhang

Yuan Zhang

University of Texas at Dallas

Multiple version iconThere are 2 versions of this paper

Date Written: March 2008


This study examines the responsiveness of analyst forecasts to current earnings announcements. The results show considerable cross-sectional variation in analyst responsiveness and suggest that this variation is related to the costs and benefits associated with prompt forecast revisions. More importantly, this study finds that with responsive forecast revisions, more of the market reaction takes place in the event window and less in the drift window, suggesting that analyst responsiveness mitigates the post-earnings-announcement drift and facilitates market efficiency.

Keywords: Analysts responsiveness, market underreaction, post-earnings-announcement drift, delayed responses

JEL Classification: G29, M41, G14

Suggested Citation

Zhang, Yuan, Analyst Responsiveness and the Post-Earnings-Announcement Drift (March 2008). Available at SSRN: or

Yuan Zhang (Contact Author)

University of Texas at Dallas ( email )

P.O. Box 830688
Richardson, TX 75083-0688
United States

Register to save articles to
your library


Paper statistics

Abstract Views
PlumX Metrics