Analyst Estimation Revision Clusters and Corporate Events, Part I

This paper uses periods of unusually heavy earnings estimate revision activity by analysts to assess the relative usefulness of corporate information events (CIEs) in firm valuation. Because accounting information is more readily available, newsworthy and accessible, we hypothesize that CIEs that focus on financial statement information trigger greater analyst revision activity over a shorter period of time than CIEs that offer strategic or quot;softquot; information. Our results are consistent with this hypothesis. In Part II, we examine investor response to revision clusters that accompany different CIEs