@article {Xu40, author = {Peter Xu}, title = {A Simple Test of Market EfficiencyUsing Management Forecasts in Japan}, volume = {22}, number = {2}, pages = {40--46}, year = {2013}, doi = {10.3905/joi.2013.22.2.040}, publisher = {Institutional Investor Journals Umbrella}, abstract = {Management forecasts in Japan provide important information about companies{\textquoteright} future earnings. Although some analysts revise their estimates immediately following a management forecast, many others take days and weeks to do so, making their revisions predictable for a period of time after a management forecast. Investors seem to underreact to the predictability of those estimate revisions, and betting on how analysts{\textquoteright} stale estimates will be revised can generate excess returns even after controlling for earnings estimates that have already been revised.TOPICS: Fundamental equity analysis, developed}, issn = {1068-0896}, URL = {https://joi.pm-research.com/content/22/2/40}, eprint = {https://joi.pm-research.com/content/22/2/40.full.pdf}, journal = {The Journal of Investing} }