Showing papers by "Richard M. Frankel published in 2003"
Posted Content•
TL;DR: In this paper, the authors examine how financial statement informativeness, analyst following, and news relate to the information asymmetry between insiders and outsiders and find that increased analyst following is associated with reduced profitability of insider trades and reduced insider purchases.
Abstract: We examine how financial statement informativeness, analyst following, and news, relate to the information asymmetry between insiders and outsiders. Corporations' timely disclosures of value relevant information and information collection by outsiders reduce information asymmetry, limiting insiders' ability to trade profitably on private information. We use the profitability and intensity of insider trades to proxy for information asymmetry. We find that increased analyst following is associated with reduced profitability of insider trades and reduced insider purchases. Financial statement informativeness is negatively associated with the frequency of insider purchases. However, company news, good or bad, is positively associated with insider purchase frequency.
478 citations
TL;DR: In this paper, the authors examine the association among confirming management forecasts, stock prices, and analyst expectations, and find that the market's reaction to confirming forecasts is significantly positive, indicating that benefits accrue to firms that disclose such forecasts.
Abstract: In this study we examine the association among confirming management forecasts, stock prices, and analyst expectations. Confirming management forecasts are voluntary disclosures by management that corroborate existing market expectations about future earnings. This study provides evidence that these voluntary disclosures affect stock prices and the dispersion of analyst expectations. Specifically, we find that the market's reaction to confirming forecasts is significantly positive, indicating that benefits accrue to firms that disclose such forecasts. In addition, although we find no significant change in the mean consensus forecasts (a proxy for earnings expectations) around the confirming forecast date, evidence indicates a significant reduction in the mean and median consensus analyst dispersion (a proxy for earnings uncertainty). Finally, we document a positive association between the reduction of dispersion of analysts' forecasts and the magnitude of the stock market response. Overall, the evidence suggests that confirming forecasts reduce uncertainty about future earnings and that investors price this reduction of uncertainty.
202 citations
TL;DR: In this paper, the authors examine cross-sectional determinants of the informativeness of analyst reports, i.e., their effect on security prices, controlling for endogeneity among the factors affecting informativity.
Abstract: Analyst research helps prices reflect information about a security's fundamentals. However, analysts' private incentives potentially contribute to misleading research and it is possible that the market fixates on such misleading and/or optimistic reports. We examine cross-sectional determinants of the informativeness of analyst reports, i.e., their effect on security prices, controlling for endogeneity among the factors affecting informativeness. Analysts are more informative when the potential brokerage profits are higher (e.g., high trading volume and high volatility) and when they reveal "bad news." Analyst informativeness is reduced in circumstances of increased information processing costs. We fail to find evidence that informativeness of analyst reports is due to market's fixation or over- or under-reaction to analyst reports.
182 citations
TL;DR: The themes that recur in stories written by doctors about meaningful professional experiences, and the lessons they hold are described; words from practicing physicians on themes they choose to write about are offered to complement and deepen insights from this research.
Abstract: The internists in the authors' study wrote about miracles and mistakes, sharing their own lives and their patients' lives, witnessing profound experiences, and receiving acknowledgment for a job we...
136 citations
Book•
01 Jan 2003
TL;DR: Introduction clinical applications research education and administration history and philosophy, and how to apply it to clinical practice and practice.
Abstract: Introduction clinical applications research education and administration history and philosophy.
110 citations
TL;DR: In this paper, the authors used accounting performance to identify categories and test the idea that investors misclassify firms and thus systematically misprice them, and found evidence that trends and sequences of accounting performance, as a proxy for representativeness bias, influence investor expectations to generate return predictability.
Abstract: Assessing the predictive ability of behavioral finance theories using out-of-sample data is important. Without predictive tests, the risk of overfitting theory to data is large considering the potentially boundless set of psychological biases underlying the behavioral explanations for observed security price behavior. We test pricing effects attributed to a central psychological bias, representativeness, which underlies many behavioral-finance theories. This bias influences individuals beliefs about future outcomes based on how closely past outcomes represent certain categories. To produce out-of-sample tests, we use accounting performance to identify these categories and test the idea that investors misclassify firms and thus systematically misprice them. Evidence fails to suggest that trends and sequences of accounting performance, as a proxy for representativeness bias, influence investor expectations to generate return predictability.
97 citations
TL;DR: Content areas the authors believe are needed to improve communication between cancer patients and their practitioners are defined and a research agenda is outlined that encourages evaluation of the model proposed.
78 citations
TL;DR: In the interest of publicizing examples of funded qualitative health research, the authors share a proposal to the Agency for Healthcare Research and Quality in Washington, D.C., in which they sought to elicit patient stories of preventable problems in their primary health care that were associated with psychological or physical harms.
Abstract: In the interest of publicizing examples of funded qualitative health research, the authors share a proposal to the Agency for Healthcare Research and Quality in Washington, D.C., in which they sought to elicit patient stories of preventable problems in their primary health care that were associated with psychological or physical harms. These stories would allow for the construction of a tentative typology of errors and harms as experienced by patients and the contrasting of this with errors and harms reported by primary care physicians in the United States and other countries. The authors make explicit the anticipated concerns of reviewers more accustomed to quantitative research proposals and the arguments and strategies employed to address them.
21 citations
TL;DR: Convenience sampling does not account for nonparticipating faculty viewpoints or those who left the program, but concrete benefits can be expected if support and investment by the program is in place.
Abstract: Background: Patient perspectives are valuable for clinical care and teaching. Purpose: To understand personal and programmatic effects of using HIV-infected persons as teachers in courses about care of HIV-infected people. Methods: Semistructured interviews with HIV-infected faculty for New England AIDS Education and Training Center (NEAETC), addressing teaching decision and its personal, medical, and psychological consequences. Interview transcripts were analyzed via iterative, consensus building. Results: Participants reported consequences of teaching that benefited them as patients (finding health care providers, increasing their knowledge base, and receiving tangible rewards such as gifts). A deeper level of benefit was realized personally, increasing control over their life and disease. Relationships, personal and professional, changed, from unilateral to mutual, heightening a sense of their own empowerment. Teaching built support networks and aided in coping with difficult issues raised (negative em...
15 citations
01 Jan 2003
6 citations