Correlated forecast errors

Article Abstract:

A study was conducted to investigate independent and correlated information gathering by investors and to gauge whether investors' information-gathering efforts overlap to subsequently cause correlated errors assuming these investors have the power to choose what data to gather about an organization. A model was constructed where informed investors select the correlation between the error terms in their personal information. Data indicates that the selected correlation will fall between the extremes of complete independent information gathering and total correlated information gathering. The data also furnished one explanation for why individual earnings forecast errors are correlated and how that correlation arises endogenously.

Other Financial Vehicles, Investors, not elsewhere classified, Investors NEC, Information Theory, Methods, Evaluation, Information technology, Practice, Economics, Investors, Information measurement, Information theory in economics

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Effect of investor speculation on earnings management

Article Abstract:

The influence of the speculator's information on earnings management behavior, quality of reported earnings, and stock price efficiency are examined. Predictions and interpretations are provided for short window event studies and long-window association studies.

Forecasts, trends, outlooks, Financial Systems & Controls, Financial Management, Forecasts and trends, Investments, Market trend/market analysis, Stock price indexes

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Imperfect information and credible communication

Article Abstract:

The affect of quality or relevance of sender information on the quality of receiver information is investigated. The endowment of the sender with summary or coarse information leads to maximization of the receiver's information.

Analysis, Financial services industry, Information services, Financial information services, Disclosure of information

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