%0 Journal Article
%T Stock Return Synchronicity and Analysts¡¯ Forecast Properties
%A Hyung Ju Park
%A Ji-Hye Park
%A Joong-Seok Cho
%J -
%D 2016
%R https://doi.org/10.22146/gamaijb.16941 https://doi.org/10.22146/gamaijb.16941
%X Using stock return synchronicity as a measure of a firm¡¯s information environment, our research investigates how the firms¡¯ stock return synchronicity affects analysts¡¯ forecast properties for the accuracy and optimism of the analysts¡¯ annual earnings forecasts. Stock return synchronicity represents the degree to which market and industry information explains firm-level stock return variations. A higher stock return synchronicity indicates the higher quality of a firm¡¯s information environment, because a firm¡¯s stock price reflects more market-level and industry-level information relative to firm-specific information. Our study shows that stock return synchronicity positively affects the forecast properties. Our finding shows that when stock return synchronicity is high, analysts¡¯ annual earnings forecasts are more accurate and less optimistically biased
%U https://jurnal.ugm.ac.id/gamaijb/article/view/16941