Maxent-based explanation of why financial analysts systematically under-predict companies’ performance

© 2017 by the Mathematical Association of Thailand. All rights reserved. Several studies have shown that financial analysts systematically under-predict the companies’ performance, so that quarter after the quarter, 70-75% of the companies outperform these predictions. This percentage remains the sa...

Full description

Saved in:

Bibliographic Details
Main Authors:	Vladik Kreinovich, Songsak Sriboonchitta
Format:	Journal
Published:	2018
Subjects:	Mathematics Agricultural and Biological Sciences
Online Access:	https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85039706979&origin=inward http://cmuir.cmu.ac.th/jspui/handle/6653943832/43764
Tags:	Add Tag No Tags, Be the first to tag this record!
Institution:	Chiang Mai University

id	th-cmuir.6653943832-43764
record_format	dspace
spelling	th-cmuir.6653943832-437642018-04-25T07:30:56Z Maxent-based explanation of why financial analysts systematically under-predict companies’ performance Vladik Kreinovich Songsak Sriboonchitta Mathematics Agricultural and Biological Sciences © 2017 by the Mathematical Association of Thailand. All rights reserved. Several studies have shown that financial analysts systematically under-predict the companies’ performance, so that quarter after the quarter, 70-75% of the companies outperform these predictions. This percentage remains the same where the economy is in a boom or in a recession, whether we are in a period of strong or weak regulations. In this paper, we provide a possible Maximum Entropy-based explanation for this empirical phenomenon – an explanation rooted in the fact that financial analysts mostly analyze financial data, while to get a more accurate prediction, it is important to go deeper, into the technical issues underlying the companies functioning. 2018-01-24T03:57:53Z 2018-01-24T03:57:53Z 2017-01-01 Journal 16860209 2-s2.0-85039706979 https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85039706979&origin=inward http://cmuir.cmu.ac.th/jspui/handle/6653943832/43764
institution	Chiang Mai University
building	Chiang Mai University Library
country	Thailand
collection	CMU Intellectual Repository
topic	Mathematics Agricultural and Biological Sciences
spellingShingle	Mathematics Agricultural and Biological Sciences Vladik Kreinovich Songsak Sriboonchitta Maxent-based explanation of why financial analysts systematically under-predict companies’ performance
description	© 2017 by the Mathematical Association of Thailand. All rights reserved. Several studies have shown that financial analysts systematically under-predict the companies’ performance, so that quarter after the quarter, 70-75% of the companies outperform these predictions. This percentage remains the same where the economy is in a boom or in a recession, whether we are in a period of strong or weak regulations. In this paper, we provide a possible Maximum Entropy-based explanation for this empirical phenomenon – an explanation rooted in the fact that financial analysts mostly analyze financial data, while to get a more accurate prediction, it is important to go deeper, into the technical issues underlying the companies functioning.
format	Journal
author	Vladik Kreinovich Songsak Sriboonchitta
author_facet	Vladik Kreinovich Songsak Sriboonchitta
author_sort	Vladik Kreinovich
title	Maxent-based explanation of why financial analysts systematically under-predict companies’ performance
title_short	Maxent-based explanation of why financial analysts systematically under-predict companies’ performance
title_full	Maxent-based explanation of why financial analysts systematically under-predict companies’ performance
title_fullStr	Maxent-based explanation of why financial analysts systematically under-predict companies’ performance
title_full_unstemmed	Maxent-based explanation of why financial analysts systematically under-predict companies’ performance
title_sort	maxent-based explanation of why financial analysts systematically under-predict companies’ performance
publishDate	2018
url	https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85039706979&origin=inward http://cmuir.cmu.ac.th/jspui/handle/6653943832/43764
_version_	1681422433833189376

Maxent-based explanation of why financial analysts systematically under-predict companies’ performance

Similar Items