חיפוש מתקדם

חדשות ואירועים


Multi-disciplinary seminar in March

2nd March: Mickie Eisenman, OB/Strategy

Why Botherwith Workspace Design? Rethinking Effective Organizational Aesthetic Communication

23rd March: Bini Segal, Accounting

The Interpretation of Unanticipated News Arrival and Analysts' Skill


Analysts’ functions are divided into discovery and interpretation roles, but separating between the two is non-trivial. We conjecture that analysts’ interpretation skill can be gauged by their forecast revisions following material unanticipated news—in particular following non-earnings 8-K reports, which arrive at the market unexpectedly. We establish that unanticipated 8-Ks are informative for analysts, and find that analysts who are more likely to revise their forecasts following unanticipated 8-Ks provide more timely and accurate forecasts. We document a positive association between analysts’ tendency to react to unanticipated 8-Ks and market reaction to their recommendation changes, suggesting investors prefer these analysts’ opinions.