ChNAnalyst · Earnings event · Scherbina (2008)

Decline in Analyst Coverage

Long minus short portfolio using the original paper's sort and weighting, market-adjusted. Quarterly, 1978Q2 to 2024Q4.

Expected return · posterior mean, % per quarter
Next quarter
1.25%
95% interval 0.21% to 2.28%
Next year
1.24%
95% interval 0.19% to 2.29%
Next five years
1.21%
95% interval 0.06% to 2.32%

OAP publishes no uniform quintile or decile portfolios for this signal, so only the paper's original portfolio convention is shown.

Cumulative market-adjusted return

+605% since 1978Q2 · log scale

Past performance, annualized

Window Mean Vol. Sharpe t
1978Q2–2024Q4 5.66% 15.38% 0.37 2.46
2020Q1–2024Q4 6.14% 10.80% 0.57 1.27
2024Q1–2024Q4 −3.83% 6.90% −0.56 −0.56

Forecast Sharpe ratio, per quarter

Horizon Mean 95% interval P(neg)
Next quarter 0.163 0.028 – 0.297 0.01
Next year 0.161 0.025 – 0.298 0.01
Next five years 0.157 0.008 – 0.302 0.02
Category
Earnings event
Form
Discrete
Data
Analyst
Predicted sign
Negative
Original sample
1982–2005