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Is Analyst Output Informative? An Intraday Study of Analyst Comments

dc.contributor.authorChen, Jason V.
dc.contributorNagar, Venky
dc.contributorSchoenfeld, Jordan
dc.date.accessioned2013-08-28T17:20:23Z
dc.date.available2013-08-28T17:20:23Z
dc.date.issued2017-02
dc.identifier1197en_US
dc.identifier.urihttps://hdl.handle.net/2027.42/99582
dc.description.abstractConventional wisdom suggests that the public release of financial analyst output is informative to traders about firm value. However, empirical tests of this mechanism have encountered difficulties in isolating the release of analyst output from concurrent intervening events such as analysts' private-client communications. Earnings conference calls provide a unique opportunity to overcome this obstacle: both analyst remarks and stock price movements can be measured publicly in real time. Accordingly, we find that the linguistic tone of analyst comments during the call is significantly associated with intraday returns after appropriately controlling for management disclosures, explaining about one-third of the stock price movement during the discussion period. In reacting to analyst tone, traders anticipate future analyst predictions and recommendations on the company, which can help to explain why prior studies have found mixed evidence on the price reaction to the release of those products. Overall our findings suggest that traders use the public release of analyst output to determine firm value.en_US
dc.subjectAnalyst Outputen_US
dc.subjectconference callsen_US
dc.subjectInformation Equalityen_US
dc.subjectCorproate Disclosureen_US
dc.subjecten_US
dc.subject.classificationen_US
dc.subject.classificationAccountingen_US
dc.titleIs Analyst Output Informative? An Intraday Study of Analyst Commentsen_US
dc.typeWorking Paperen_US
dc.subject.hlbsecondlevelEconomicsen_US
dc.subject.hlbtoplevelBusinessen_US
dc.contributor.affiliationumRoss School of Businessen_US
dc.contributor.affiliationumcampusAnn Arbor
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/99582/1/1197_Chen.pdf
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/99582/4/1197_Chen_Nov13.pdf
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/99582/6/1197_Chen_Oct14.pdf
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/99582/8/1197_Chen_Dec14.pdf
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/99582/10/1197_Chen_Oct5_2015.pdf
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/99582/12/1197_Chen_Oct5b_2015.pdf
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/99582/14/1197_Nagar_July2016.pdf
dc.description.bitstreamurlhttp://deepblue.lib.umich.edu/bitstream/2027.42/99582/16/1197_Schoenfeld_Feb2017.pdf
dc.description.filedescriptionDescription of 1197_Nagar_July2016.pdf : July 2016 Revision
dc.description.filedescriptionDescription of 1197_Chen_Oct5b_2015.pdf : October 2015 Revision
dc.description.filedescriptionDescription of 1197_Chen_Oct5_2015.pdf : October 2015 Revision
dc.description.filedescriptionDescription of 1197_Chen_Dec14.pdf : Dec. 2014 revision
dc.description.filedescriptionDescription of 1197_Chen_Nov13.pdf : Nov 2013 update
dc.description.filedescriptionDescription of 1197_Chen_Oct14.pdf : October 2014 revision
dc.description.filedescriptionDescription of 1197_Schoenfeld_Feb2017.pdf : February 2017 update
dc.owningcollnameBusiness, Stephen M. Ross School of - Working Papers Series


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