Earnings Surprise Implicit in Stock Prices: Which Earnings Forecasting Models are Investors Using and What Determines Their Choice?

Material TypeArticleLanguageEnglish
TitleEarnings Surprise Implicit in Stock Prices: Which Earnings Forecasting Models are Investors Using and What Determines Their Choice? Author(S)Leon Zolotoy (Author)
Abstract  In this paper we address the issue of modeling the relationship between stock prices and accounting earnings in the presence of potential divergence of opinion regarding the expected company earnings. We introduce a new measure of the earnings surprise, the implied earnings surprise, which we define as the weighted average of the random walk, time series and the analysts’ earnings surprises, with the weights being estimated directly from stock prices. ...Paginationp1161–1179
SubjectEconomicsDescriptorsEconomics
Journal TitleJournal of Business Finance & Accounting  
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