PT  - JOURNAL ARTICLE
AU  - Peter Xu
TI  - A Simple Test of Market Efficiency<br/>Using Management Forecasts in Japan
AID  - 10.3905/joi.2013.22.2.040
DP  - 2013 May 31
TA  - The Journal of Investing
PG  - 40--46
VI  - 22
IP  - 2
4099  - https://pm-research.com/content/22/2/40.short
4100  - https://pm-research.com/content/22/2/40.full
AB  - Management forecasts in Japan provide important information about companies’ 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’ 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