“Determinants and Consequences of Information Processing Delay: Evidence from Thomson Reuters Institutional Brokers’ Estimate System” by Dr. Stanimir MARKOV
Wednesday, 18 May 2016 | 2:30pm - 4:00pm
1303, K.K. Leung Bldg
ACCOUNTING SEMINAR
Speaker:
Dr. Stanimir MARKOV
Associate Professor of Accounting
Cox School of Business
Southern Methodist University
Abstract:
We present evidence that highlights the role of information intermediaries in the distribution and processing of earnings estimates. Focusing on Thomson Reuters, we find that the time taken to activate an analyst’s earnings forecast in the Institutional Brokers’ Estimate System is related to measures of investor demand for timely information processing, processing difficulty, and limited attention. Further, unexpected activation delay is negatively (positively) related to the amount of information impounded in prices during the forecast announcement (post-announcement) window. Finally, analyzing intraday returns around activation times, we find evidence consistent with activations facilitating price discovery.
