Management communications with securities analysts

Published

Journal Article

This paper examines the benefits from communications made at corporate presentations to securities analysts. We examine whether firms benefit by increasing analyst following or by correcting mispricing, and whether analysts gain by acquiring information that improves the frequency or quality of their forecasts. The results show significant increases in analyst following, and significantly positive abnormal returns on the presentation date, with larger reactions observed for underpriced securities. Finally, although we find an increase in forecasting activity following the presentations, we find no evidence that analysts' post-presentation forecasts are less disperse, more accurate or less biased than their pre-presentation forecasts.

Full Text

Duke Authors

Cited Authors

  • Francis, J; Douglas Hanna, J; Philbrick, DR

Published Date

  • December 31, 1997

Published In

Volume / Issue

  • 24 / 3

Start / End Page

  • 363 - 394

International Standard Serial Number (ISSN)

  • 0165-4101

Digital Object Identifier (DOI)

  • 10.1016/S0165-4101(98)00012-3

Citation Source

  • Scopus