Analyst underreaction and the post‐forecast revision drift

• Published in: Journal of business finance & accounting Vol. 47; no. 9-10; pp. 1151 - 1181
• Main Authors: Chen, Po‐Chang, Narayanamoorthy, Ganapathi S., Sougiannis, Theodore, Zhou, Hui
• Format: Journal Article
• Language: English
• Published: Oxford Wiley Subscription Services, Inc 01.10.2020; Blackwell Publishing Ltd
• Subjects: Analyst forecast revisions; analyst underreaction; Analysts; Delayed; Earnings; Earnings forecasting; Forecasting; News; PFRD; post‐forecast revision drift; revision momentum; Revisions; Stock prices

The post‐forecast revision drift (PFRD), the phenomenon of delayed stock price reactions to analyst forecast revisions, is a well‐documented market anomaly. Prior research attributes PFRD to underreaction by investors to analyst forecast revisions. This study investigates the role of the analyst for...