faqs.org » Abstracts Index » Abstracts » Business

Rationality and analysts' forecast bias

Article Abstract:

This article uses a quadratic-loss utility function to model corporate earnings forecasts, using trade off bias to improve forecast accuracy and management access. Results suggest that predictable and positive bias may be a rational part of optimal earnings forecasts.

Analysis, Economic aspects, Profits, Economic forecasting, Financial analysis, Corporate profits, Rationing

---

The economic value of volatility timing

Article Abstract:

This article examines whether volatility models have explanatory power and economic value, by using conditional mean-variance analysis. Results show that volatility timing strategies are more successful than unconditionally efficient static portfolios.

Economics, Research and Development in the Social Sciences and Humanities, Statistical Data Included, Value (Economics)

---

Some parts © 2012 Advameg, Inc.