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Edward Vali

Edward Vali
PhD fellow , M.Sc. Finance & Accounting
Edward Vali

Department of Accounting and Auditing

Tel.: +45 38 15 23 01
Cell phone: +45 27 42 74 99
Fax:+45 38 15 23 21
E-mail: ev.acc@cbs.dk



Link to this homepage: uk.cbs.dk/staff/evacc

Affiliated with Research Centre on Biotech Business

Expectations game and the properties of analysts’ forecasts
In the light of recent financial crisis, my project questions the interaction between firm and capital market. More precisely, it explores how producers of corporate information (the management of firm) and the users of that information (financial analysts and investors) are affecting the behavior of each others on a quarterly basis.
The focus in my research is to examine the properties of the earnings game phenomenon where voluntary disclosure policy of management (e.g. with the means of earnings guidance) and forecasting behavior of financial analysts (e.g. earnings forecasts and the following revisions) influence the market’s expectations.
I hypothesize the intentional biased behavior of the analysts in an analytical model of earnings expectations game. And among other results find support on a desire to produce meetable or beatable forecast targets by analysts in following empirical tests based on the US data. I also find that the results of the tensions in the game are in favor of investors.
Thus my research is related to voluntary disclosure literature, analysts’ forecasting literature, and earnings management literature, all in the domain of capital market accounting studies.

Primary research areas

  • Financial Accounting
  • Capital Market Research
  • Financial Analysts' Behavior
  • Intangibles & Intellectual Capital


Last updated by Pia Clasen 29/07/2011