Firms make forward-looking decisions. We provide evidence that managers' investment decisions contain news about future aggregate conditions. This information is best extracted by dimension-reduction techniques. We appeal to news-driven business cycle theory to explain our result, suggesting...

During times when the Chinese government wished to prop up the market, sell-side analysts from brokerages with significant government ownership issued relatively less pessimistic (or more optimistic) earnings forecasts, earnings-forecast revisions, and stock recommendations; they were also...