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The purpose of this paper is to investigate the effect of forecast earnings’ revision on the evolution of securities prices in the Tunisian stock market.

A portfolio study of investor reaction and stock prices following revisions is first conducted to highlight the existence of abnormal return related to analysts’ earnings revisions. Analysis is then supplemented by a second empirical investigation based on the panel data to quantify the effect of revision on the abnormal profitability of securities.

The evidence found in this paper validates the fundamental theoretical hypothesis according to which the psychological bias resulting from the effect of the forecast earnings revision is related to the abnormal profitability of the securities. The authors conclude the importance of the revision impact on investors’ behavior on one hand, and the informational content of the analysts’ forecasts and the biases which they lead on the other hand.

Globally, the empirical illustrations largely validate the findings of behavioral models particularly that of Kormendi and Lippe (1987), Cornell and Letsman (1989), Beaver et al. (2008) which states that investors under psychological bias, react to the effect of forecast earnings revision by an abnormal variation in stock prices.

Firms’ real activities management (RAM) can have a more detrimental effect on firms’ future performance than accrual earnings management. This paper aims to examine whether analysts, who play an important role as information intermediaries, understand the negative effect of RAM on firms’ future performance and respond to it accordingly.

The authors investigate whether analysts lower their earnings forecasts and stock recommendations of the firms with RAM. The authors measure RAM by examining firms’ abnormal decreases in discretionary expenses, abnormal increases in production and abnormal decreases in cash flow from operations following prior literature.

The authors find that after controlling for earnings surprises and other important firm characteristics, analysts lower their forecasts of future annual earnings and stock recommendations of the firms that show signs of RAM.

First, as in other RAM studies, the results in this study are subject to measurement errors inherent in the estimation of RAM (i.e. abnormal production costs, abnormal CFO and abnormal discretionary expenditures). Second, we include only firm-year observations that barely make positive income in our samples following the previous study. This sample selection criterion helps increase the power of the test by examining the “suspect firms group,” which are more likely to engage in earnings management. However, one can challenge that our findings on the association between RAM and analysts’ reactions could be only case-specific and cannot be generalized.

This study contributes to the literature on earnings management and especially on RAM. Specifically, none of the previous studies clearly examines whether analysts understand the negative impact of RAM on firms’ future performance and respond accordingly, although there are studies showing the negative association between RAM and firms’ future operating performance and studies showing the negative association between analysts following and RAM. Thus, filling the gap, this study provides a specific reason for the negative association between the analyst following and real earnings management presented in previous studies.

The findings will be of interest to regulators, who are concerned about the potential negative consequences in which tighter accounting standards can result. For example, Ewert and Wagenhofer (2005) theoretically demonstrate that tighter accounting standards can prompt more RAM instead of accounting earnings management. The study provides important evidence supporting that such suboptimal operating activities are closely watched by analysts and are potentially penalized by the market. If the market is able to detect RAM and allocate fewer resources to the firms that engage in it, then the concerns associated with the substitution effect between accrual-based earnings management and RAM can be diminished.

Prior research suggests that tighter accounting regulations (e.g. the Sarbanes-Oxley Act) prompt more RAM than accounting earnings management. The study provides evidence supporting that such suboptimal operating activities are closely watched by analysts and are potentially penalized by the market.

A proposed model of the use of public library lending bookstocks, and a programme of data collection to establish the key parameters.

The theory of self‐organized criticality (SOC) suggests that interdependencies and interactions among components of a system cause the system to perpetually organize itself towards a critical state. A small change in the value of any component of the system can affect the entire system (like a domino effect). Using SOC theory, we develop hypotheses to associate changes in a firm's production level and its stock prices. Change in performance and stock prices is theorized to vary positively with change in production below the critical level of production (called sub‐critical production), and vary negatively above the critical level of production (called supra‐critical production). Increasing (decreasing) economies of scale operate during sub (supra) critical levels of production. Change in production level from either the sub‐critical or supra‐critical level is posited to take the firm towards the critical production level. There are two reasons to investigate changes in production level: first, prior market research has not fully explained changes in stock prices, and, second, production (as modeled in microeconomic theory as a system of interacting input factors) provides an appealing case to investigate its SOC character. If presence of SOC‐like behavior for production process is observed, then statistical properties of critical states of production can be studied to provide better prediction abilities. Market evaluations of production‐related changes imply that change in production is a fundamental economic triggering process that can explain variations in stock prices. The results, based on analyzing 40 quarters of data, generally support the hypotheses that change in stock prices are associated with changes in production level, and that stock prices fall (rise) when the firm operates in supra (sub) critical production levels.

In addition to providing a review of the literature recently published in the librarianship of non‐book materials this survey aims to draw attention to the characteristics, problems and achievements particular to the documentation and handling of non‐book materials (NBM) in many types of libraries. The materials are briefly described and considerations of selection, acquisition, organization, storage and in particular bibliographic control are dealt with in some detail. Other areas of concern to the librarian dealing with media resources, including the organization and training of staff, planning, equipment, exploitation and copyright, are also discussed. The past decade has seen the widespread introduction of NBM into libraries as additional or alternative sources of information. Librarians have been given an opportunity to rethink many basic principles and adapt existing practice to encompass the new materials. The survey reflects the achievements and some of the failures or problems remaining to be solved in this rapidly expanding area of library work.

Financial analysts have been found to be overconfident. The purpose of this paper is to study the ramifications of that overconfidence on the dispersion of earnings estimates as a predictor of the US business cycle.

Whether aggregate analyst forecast dispersion contains information about turning points in business cycles, especially downturns, is examined by utilizing the analyst earnings forecast dispersion metric. The primary analysis derives from logit regression and Markov switching models. The analysis controls for sentiment (consumer confidence), output (industrial production), and financial indicators (stock returns and turnover). Analyst data come from Institutional Brokers Estimate System, while the economic data are available at the Federal Reserve Bank of St Louis Economic Data site.

A rise in the dispersion of analyst forecasts is a significant predictor of turning points in the US business cycle. Financial analyst uncertainty of earnings estimate contains crucial information about the risks of US business cycle turning points. The results are consistent with some analysts becoming overconfident during the expansion period and misjudging the precision of their information, thus over or under weighting various sources of information. This causes the disagreement among analysts measured as dispersion.

This is the first study to show that analyst forecast dispersion contributions valuable information to predictions of economic downturns. In addition, that dispersion can be attributed to analyst overconfidence.

This paper does not claim to be original. Many sources and opinions have been used. The aim is to stimulate thought and discussion. Stock editing cannot be divorced from stock provision (and indeed stock exploitation) and is in a sense synonymous with it. The result is the briefest survey of provision for adults.

This study aims to document the influence of information content and the informativeness of analyst reports towards cumulative abnormal return in the Malaysian market.

Samples of analyst reports for the period 4th January 2010 until 24th December 2015 were collected from the Bursa Malaysia’s repository system for daily basis information. The study uses market-adjusted method for the calculation of cumulative abnormal return and panel regression to test the research objective. In addition, diagnostic tests, which include the variance inflation factor (VIF), correlation analysis, heteroscedasticity tests, serial auto-correlation and the Hausman test, were also performed to ensure the validity and reliability of the data.

Result from the unbalanced panel data reveals that not all information contained in the analyst reports is able to detect stock returns movement. Only five variables are shown to have a strong association with the returns, and these are target price, earnings forecast, return on equity, cash flows to price and sales to price ratio. The R-square value has also been shown to be relatively low (0.79 per cent), indicating the low predictive power of information content and the informativeness of the analyst report in explaining stock returns. To support the findings based on the knowledge obtained, a descriptive analysis on whether the analyst reports were able to predict the recommendation accurately was performed. Result from the descriptive analysis shows that only 57 per cent of the recommendations are accurate, evidenced by the differing target price and ending price. This outcome appears to contradict the theory of signalling hypothesis. Hence, it can be concluded that analyst reports have less informational role among investors.

This paper has, thus, provided insight into how information disclosed in the analyst report influence the return of stocks, further extending the limited research on analyst report in the context of the Malaysian markets. The paper has also added to the existing literature by providing several implications to practitioners and researchers alike.

A RECENT visit to Norway gave me the opportunity to see a cross‐section of libraries including those of the Royal University, the Storting and the Nobel Institute, the Deichman Library and its branches in and around Oslo, an industrial research library at Blindern, and provincial public libraries at Fredrikstad, Sarpsborg and Tønsberg. In addition, I visited the Statens Bibliotektilsyn (State Library Office), the Norwegian Library School, and the A/L Biblioteksentralen (the Central Buying Agency for Libraries). I had interesting discussions with Harald L. Tveterås, director of the Royal University Library and State adviser on scientific and research libraries, and also with Anders Andreassen, State director for public and school libraries, whose help throughout was invaluable.

THE library year ends in no spectacular way. If posterity has any cause to remember 1932 it will probably be as of a year when the doctrine of economy was raised to the rank of a divine dogma by a world of debtors and creditors all crazed with fear over international debts. A year of hurried committees producing reports for the reduction of expenditures, beneficient or otherwise; especially, in this last month, a report which if implemented would cripple almost every local activity, and set back the clock of social effort at least thirty years. The intention of such reports is no doubt good; their effects are yet to be seen. So far, the increased parsimony in national and local affairs seems only to have intensified unemployment without bettering the general situation. A reaction against all this is beginning, not a moment too soon, and all who care for the finer things in our civilisation will be compelled to stand against the more unsocial recommendations of these reports.