Is News Informative or Sentimental to Analysts
We examine whether financial analysts are influenced more by information element or more by sentiment element in media news tones when form their earnings forecast.We find that analysts turn to be influenced by the information element rather than by the sentiment element.In addition,positive news tones tend to useful to analysts while negative news tones tend to harmful.Specifically,positive tones increase analysts” earnings fore-cast accuracy and decreases information asymmetry among the analysts while negative news tones do the opposite.It is likely that analysts” optimism selection in news environment causes misinterpretation of negative news tones and managers” hiding bad news also makes negative tones less informative than the positive tones.Moreover,neither positive tone nor negative tone affects earnings forecast bias,again against the sentiment element influence possibility.Finally,analysts” characteristics also play a role-positive tones tend to be more useful to analysts with poor ranking performance,heavy task complexity and overconfidence bias.
Media news news tone sentiment soft information analyst forecast
Li Guo Dashan Huang Jun Tu Rong Wang
Singapore Management University
国内会议
上海
英文
645-711
2016-07-16（万方平台首次上网日期，不代表论文的发表时间）