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Analyst valuation and corporate value discovery

Listed author(s):
  • Laih, Yih-Wenn
  • Lai, Hung-Neng
  • Li, Chun-An
Registered author(s):

    This paper examines firm-level valuations by financial analysts and by the market, using a traditional vector error-correction model (VECM) or threshold vector error-correction model (TVECM) to obtain the information shares of the two parties. While investors' valuations lead financial analysts' valuations in most firms, the reverse is not uncommon. A cross-sectional analysis reveals that analyst forecasts are more valuable for firms with less trading, less uncertainty, and weaker association between prices and earnings.

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    File URL: http://www.sciencedirect.com/science/article/pii/S105905601400166X
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    Article provided by Elsevier in its journal International Review of Economics & Finance.

    Volume (Year): 35 (2015)
    Issue (Month): C ()
    Pages: 235-248

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    Handle: RePEc:eee:reveco:v:35:y:2015:i:c:p:235-248
    DOI: 10.1016/j.iref.2014.10.004
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/620165

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