Jung, Boochun; Shane, Philip B.; Sunny Yang, Yanhua - In: Journal of Accounting and Economics 53 (2012) 1, pp. 55-76
Prior literature portrays long-term growth (LTG) forecasts as nonsensical from a valuation perspective. Instead, we hypothesize that LTG forecasts signal high effort and ability to analyze firms' long-term prospects. We document stronger market response to stock recommendation revisions of...