Volume of Trading and the Dispersion in Financial Analysts' Earnings Forecasts

• Published in: The Accounting review Vol. 66; no. 2; pp. 389 - 401
• Main Authors: Ajinkya, Bipin B., Atiase, Rowland K., Gift, Michael J.
• Format: Journal Article
• Language: English
• Published: Menasha, Wis American Accounting Association 01.04.1991
• Subjects: Analytical forecasting; Earnings; Earnings forecasting; Earnings per share; Empirical evidence; Employment forecasting; Financial advisers; Forecasting models; Forecasting standards; Forecasts; Investors; Mathematical models; Securities trading; Shorter Articles; Statistical forecasts; Statistical significance; Studies; Trade volume; Variables; Volume

Varian (1985) and Karpoff (1986) showed analytically that trading volume is positively related to the degree of differing beliefs. This study provides empirical evidence on the postulated relationship. The extent of disagreement or dispersion in financial analysts' forecasts of annual EPS for a...