Abstract
ABSTRACT We examine whether media sentiment divergence (MSD), which refers to divergence in sentiment across the media’s coverage of a firm, is associated with the accuracy of analyst earnings forecasts. Our results reveal that the level of a firm’s MSD is positively associated with analyst forecast accuracy. In addition, we find that the time required by analysts to make their first annual earnings forecast is positively associated with MSD, suggesting that analysts need more time to process information from the media. Overall, we provide evidence that heterogeneity in the media’s interpretation of corporate news is an important factor affecting analysts’ forecast.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Asia-Pacific Journal of Accounting & Economics
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
