Analyst valuation and corporate value discovery

Yih Wenn Laih, Hung Neng Lai, Chun An Li

Research output: Contribution to journalArticlepeer-review

3 Scopus citations


This paper examines firm-level valuations by financial analysts and by the market, using a traditional vector error-correction model (VECM) or threshold vector error-correction model (TVECM) to obtain the information shares of the two parties. While investors' valuations lead financial analysts' valuations in most firms, the reverse is not uncommon. A cross-sectional analysis reveals that analyst forecasts are more valuable for firms with less trading, less uncertainty, and weaker association between prices and earnings.

Original languageEnglish
Pages (from-to)235-248
Number of pages14
JournalInternational Review of Economics and Finance
StatePublished - 1 Jan 2015


  • Analyst forecast
  • Information shares
  • Residual income model
  • Valuation


Dive into the research topics of 'Analyst valuation and corporate value discovery'. Together they form a unique fingerprint.

Cite this