Earnings Forecast Revisions and Information Dissemination

25 Pages Posted: 23 Jul 2003

See all articles by Timo Rothovius

Timo Rothovius

University of Vaasa - Department of Accounting and Finance

Date Written: June 2003

Abstract

This paper provides empirical evidence on the gradual information dissemination in the stock market. Brokerage analysts' earnings forecast revisions are used as information source. There are early informed, (later) informed and uninformed investors, depending on their relationship with the analyst. The trading activity of these groups is investigated in the Helsinki Stock Exchange, which identifies upstairs and downstairs markets as well as order and size of every trade, thus enabling the classification of investors. Evidence is presented supporting the hypothesis of the existence of these groups and their trading behaviour.

Keywords: Upstairs, downstairs, earnings forecast, informed traders

JEL Classification: G14

Suggested Citation

Rothovius, Timo, Earnings Forecast Revisions and Information Dissemination (June 2003). Available at SSRN: https://ssrn.com/abstract=424001 or http://dx.doi.org/10.2139/ssrn.424001

Timo Rothovius (Contact Author)

University of Vaasa - Department of Accounting and Finance ( email )

P.O. Box 700
FIN-65101 Vaasa, FI-65101
Finland

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