The Effect of Abnormal Investment on Analyst Earnings Forecast

비정상투자가 재무분석가의 이익예측에 미치는 영향

  • Jeon, Jin-Ho (Dept. of Business Administration, Catholic Kwan-Dong University)
  • 전진호 (가톨릭관동대학교 경영학과)
  • Received : 2017.12.13
  • Accepted : 2018.02.20
  • Published : 2018.02.28


In this study, targeting KOSPI and KOSDAQ listed companies, the relationship between the abnormal investment of companies and analyst earnings forecasts was empirically analyzed. The analysis period of this study spanned from 2003 to 2015 (with that of dependent variables spanning from 2004 to 2016) based on the variables of interest, and among the companies whose earnings per share forecasts were announced by financial analysts, the final sample of 4,917 companies/year that meets the research condition was selected as the target analysis. The results of the empirical analysis are as follows. First, it turned out that the more total abnormal investment, abnormal R&D and abnormal CAPEX investment, the more accurate were analyst earnings forecasts. Second, the more total abnormal investment, abnormal R&D, abnormal CAPEX investment, the more pessimistic analyst earnings forecasts tended to be. Further analysis has shown that these results came more from over investment groups than under investment groups. The results of this study are expected to make additional contributions to the existing studies in that the abnormal investment is considered as a determinant of analyst earnings forecasts.


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