Do Managers use Meeting an Analyst Forecast to Signal Private Information?

• Main Authors: Fedyk, Tatiana, Gunny, Katherine, ZHANG, Tracey Chunqi
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2009
• Subjects: Signaling; Analyst Forecasts; Earnings; Patents; Research and Development; Information Asymmetry; Accounting; Corporate Finance; Technology and Innovation
• Online Access: https://ink.library.smu.edu.sg/soa_research/9
• Institution: Singapore Management University

This paper investigates whether managers meet analyst forecasts to signal private information about the underlying value of one specific type of asset – patents. Prior research shows thereare a disproportionate number of firms that just meet analyst forecasts and there is compelling evidence of the...