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- Title
The incremental informativeness of sell-side earnings forecasts. Evidence for the Warsaw Stock Exchange.
- Authors
JAKUBOWSKI, STEPHEN T.; WÓJTOWICZ, PIOTR
- Abstract
We investigate whether earnings forecasts issued by sell-side analysts are incrementally informative about the returns of firms listed on the Warsaw Stock Exchange (WSE), a moderately-developed, postcommunist capital market. Our sample covers the fiscal years 2008-2016. The informativeness of earnings (and earnings forecasts) is defined as the association between earnings (earnings forecasts) and returns. Our findings indicate that the mean earnings forecasts issued by sell-side analysts are incrementally informative about firm returns beyond the earnings reported. This result does not depend on firm size, profitability, or market return. The findings indicate that such forecasts incorporate useful incremental valuation information and that the incremental informativeness of these forecasts serves to protect the interests of analysts' clients.
- Subjects
WARSAW Stock Exchange; EARNINGS forecasting; STOCK exchanges; SECURITIES analysts; CAPITAL market; FINANCIAL statements
- Publication
Zeszyty Teoretyczne Rachunkowości, 2019, Vol 105, Issue 161, p77
- ISSN
1641-4381
- Publication type
Article
- DOI
10.5604/01.3001.0013.6058