Using logit-based financial statement analysis, Ou and Penman estimate an earnings predictor (Pr) that also predicts returns. We develop a forecasting model that purges measurement error (i.e., expected earnings) from the Ou and Penman proxy for the market's unexpected earnings. If market...

We hypothesize that connections with buy-side analysts provide a sell-side analyst with private information generated by the buy-side that enhances the quality of sell-side research. We proxy for these connections with the number of stocks at the intersection of stocks held in the portfolios of...

Prior literature refers to economic incentives to generate investment banking business and trading commissions as explanations for analyst publication of forecasts of firms' long-term earnings growth (LTG). Prior research also documents wildly optimistic LTG forecasts and a negative relation...