Open AccessThe Impact Of Options Listing Upon The Optimistic Bias In Analysts Quarterly Earnings Forecasts
Author(s) -
David L. Senteney,
Andrew G. Snyir
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v11i4.5850
Subject(s) - earnings , listing (finance) , divergence (linguistics) , accounting , economics , actuarial science , business , cross listing , financial economics , finance , corporate governance , linguistics , philosophy
We provide evidence that firms options listing increases the divergence of analysts opinions and, at the same time, leads to a reduction in the systematic optimistic bias in an important element of the market expectation of earnings, analysts consensus earnings forecasts. Our contribution is added insight into how the increased divergence of analysts opinions following options listing drives a reduction of systematic optimistic bias in consensus analysts forecasts.