In this paper, we analyze how financial analysts generate information, make decisions about firm coverage and try to maintain their forecasting accuracy after the passage of Regulation Fair Disclosure (Reg. FD). Using the model developed by Barron, Kim, Lim and Stevens (1998), we find that...

<heading id="h1" level="1" implicit="yes" format="display">ABSTRACT</heading>We examine the contemporaneous relation between earnings forecast accuracy and recommendation profitability to assess the effectiveness with which analysts translate forecasts into profitable recommendations. We find that, after controlling for expertise, more accurate analysts make more...

This study provides evidence on the impact of the Securities and Exchange Commission's (SEC) Regulation Fair Disclosure (Reg. FD) on information asymmetry. Reg. FD prohibits firms from disclosing quot;materialquot; information selectively to analysts and institutional investors. The regulation...

This paper analyzes how managers of young firms choose among various modes of investor communications, using data on analyst presentations, management earnings forecasts, press releases and corporate finance disbursements for a sample of 645 post-IPO firms. Firms that plan to access capital...

Analysis of a sample of 253 joint venture announcements suggests that joint ventures tend to be announced when the parent firms' performance is deteriorating. However, the parent firms earn positive abnormal returns around the announcement date. There is considerable cross-sectional variation in...

We examine the relation between earnings forecast accuracy and recommendation profitability to assess the effectiveness with which analysts translate forecasts into profitable recommendations. We find that after controlling for expertise, more accurate analysts make more profitable...