Finance Seminar with Laurent Frésard, University of Lugano

On Friday, October 23, 2020, Laurent Frésard, University of Lugano will be giving a seminar on the paper: "Does Big Data Improve Financial Forecasting? The Horizon Effect"

Friday, October 23, 2020 - 11:00 to 12:00

The Department of Finance is proud to announce the upcoming online seminar with Laurent Frésard, University of Lugano.

Laurent Frésard will present:

Does Big Data Improve Financial Forecasting? The Horizon Effect

ABSTRACT
We study how data abundance affects the informativeness of financial analysts' forecasts at various horizons. Analysts produce forecasts of short-term and long-term earnings and choose how much information to collect about each horizon to minimize their expected forecasting error, net of information acquisition costs. When the cost of obtaining short-term information drops (i.e., more data becomes available), analysts change their information collection strategy in a way that renders their short-term forecasts more informative but that possibly reduces the informativeness of their long-term forecasts. Using a large sample of analysts' forecasts at various horizons and novel measures of their exposure to abundant data (e.g., social media data), we provide empirical support for this prediction, which implies that data abundance can impair the quality of long-term forecasts.

PDF iconFind the paper here.

Location and sign up:
This is an online seminar on Zoom.
Please contact us in order to sign up.

 

The page was last edited by: Department of Finance // 10/28/2020