IR Papers: ‘Predictable earnings’ create volatility

Comments (0) | 31 Oct 2011 | Rating | Print by Jeff Cossette

A roundup of academic research from the world of IR studies

Companies that attempt to achieve ‘predictable earnings’ may be shooting themselves in the foot.

A study examining the link between analyst forecast accuracy and a firm’s shareholder composition shows such companies appeal mainly to short-term-oriented institutional investors, and experience corresponding volatility.

‘Only certain segments of the market act ‘irrationally ...

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