Analysts’ Dynamic Decisions: Timeliness versus Accuracy |
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| Authors: | Steven J. Jordan Byungjin Kwak Changhee Lee |
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| Affiliation: | 1. College of Business, Alfaisal University, Riyadh, Kingdom of Saudi Arabia;2. KAIST Graduate School of Finance and Accounting, Korea Advanced Institute of Science and Technology, Seoul, Korea;3. Anisfield School of Business, Ramapo College of New Jersey, Mahwah, NJ, USA |
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| Abstract: | For analysts there is a tradeoff between the accuracy and the timeliness of their forecasts. Prior literature heavily investigates analyst forecast accuracy. Few papers investigate the importance of timeliness. To our best knowledge, there are no empirical papers to date to investigate the dynamic interplay between these key characteristics. We show that if analysts experience a period of high accuracy relative to their peers, they subsequently focus more on the timeliness of their forecasts in the subsequent period and thus issue their forecasts earlier than they did in the prior period. Copyright © 2016 John Wiley & Sons, Ltd. |
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| Keywords: | timeliness of analyst forecast analyst characteristics accuracy of analyst forecast |
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