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...

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Main Authors:	Vladik Kreinovich, Songsak Sriboonchitta
Format:	Journal
Published:	2018
Subjects:	Mathematics
Online Access:	https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85039706979&origin=inward http://cmuir.cmu.ac.th/jspui/handle/6653943832/57550
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Institution:	Chiang Mai University

id	th-cmuir.6653943832-57550
record_format	dspace
spelling	th-cmuir.6653943832-575502018-09-05T03:45:29Z Maxent-based explanation of why financial analysts systematically under-predict companies’ performance Vladik Kreinovich Songsak Sriboonchitta Mathematics © 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. 2018-09-05T03:45:29Z 2018-09-05T03:45:29Z 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/6653943832/57550
institution	Chiang Mai University
building	Chiang Mai University Library
country	Thailand
collection	CMU Intellectual Repository
topic	Mathematics
spellingShingle	Mathematics 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/6653943832/57550
_version_	1681424899649830912

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

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