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Measuring inconsistency in analyst reports

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  • Wang, Jun
  • Chen, Xing

Abstract

This study improves existing methods for measuring inconsistency in analyst reports by incorporating the standard deviations of standardized earnings forecasts, target prices, stock recommendations, and textual sentiment. We find that report inconsistency is driven by forecast complexity and analysts’ independence, with inconsistent reports exhibiting higher forecast errors and stronger short-term market reactions. Moreover, we reconcile conflicting conclusions in the literature, showing that different methods of measuring report inconsistency lead to varying research outcomes.

Suggested Citation

  • Wang, Jun & Chen, Xing, 2025. "Measuring inconsistency in analyst reports," Economics Letters, Elsevier, vol. 247(C).
    • Handle: RePEc:eee:ecolet:v:247:y:2025:i:c:s0165176524006360
    DOI: 10.1016/j.econlet.2024.112152
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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