Independent Academic Studies

Whisper Numbers Still Beating the Best Minds on Wall Street
Proven:

  • The whisper number data collected and published by WhisperNumber.com continues to provide greater returns when used as an investment vehicle, and has a greater impact on stock movement than analysts consensus estimates.

  • Financial statement users could anticipate in real time when whisper earnings Forecasts are a superior information source relative to analystsí forecasts, and whisper forecasts were more accurate than the analysts' forecasts for the full sample and for all industries except the non-S&P 500 mineral and construction sector.

    These declarations are supported by not one but four published independent academic studies of WhisperNumber.com data.

    The first study released in late 2005 was titled 'Conflict in Whispers and Analysts Forecast: Which One Should Be Your Guide', and the second release was in mid-2007 titled "Do Bulls and Bears Listen to Whispers", both courtesy of San Jose State University College of Business and Pepperdine University, and published in the Financial Decisions journal.

    The third and fourth studies were published in 2008 and 2011 respectively. One titled 'Hearing the Whispers' was published in the Financial Advisor Magazine, and the other titled "Explaining the Surprising Performance of Whisper Forecasts of Earnings", published in Advances in Quantitative Analysis of Finance and Accounting. Both courtesy of Susan Machuga, Univeristy of Hartford Barney School of Business, Karen Teitel, College of Holy Cross, and Ray Pfeiffer, University of Massachusetts.

    To learn more about these studies and how WhisperNumber.com has used the results to develop their unique trading tool called 'Whisper Reactors', select from one of the following links.

    Published Academic Studies Supporting 15 Years of Proven Data

    'Explaining the Surprising Performance of Whisper Forecasts of Earnings'
        (Advances in Quantitative Analysis of Finance and Accounting)

    Whisper forecasts are more likely to be present when analystsí forecasts are pessimistic and management has not issued a forecast; whisper forecasts are more accurate than analystsí forecasts when analystsí forecasts are extremely pessimistic; and whispers have incremental information content when analystsí forecasts are pessimistic. If these findings are stable and generally representative, financial statement users could anticipate in real time when whisper earnings forecasts are a superior information source relative to analystsí forecasts. This is potentially valuable information to market participants.


    'Hearing the Whispers'
        (Financial Advisor Magazine)

    Overall, whisper forecasts were more accurate than the analysts' forecasts for the full sample and for all industries except the non-S&P 500 mineral and construction sector. Interestingly, for non-S&P 500 companies, the median whisper forecast was perfectly accurate for three classifications: for manufacturing; for the finance, insurance and real estate area; and for public administration.


    'Conflict in Whispers and Analysts Forecast: Which One Should Be Your Guide'
        (Financial Decisions Journal)

    Results of this study conclude investor estimates for quarterly earnings (whisper numbers) provide greater returns when used as an investment vehicle, and have a greater impact on stock movement than analysts consensus estimates. Click here to learn more.


    'Do Bulls and Bears Listen to Whispers'
        (Financial Decisions Journal)

    A post-earnings announcement drift associated with the market reaction to analyst forecasts errors remains a puzzle. This study suggests that whispers help to explain part of the puzzle. The study examines the market reaction to whispers and analysts in bull and bear markets, and finds that investors listen to whispers in the bull market and whispers help explain the post-announcement drift. Click here to learn more.

    Reference Links:

  • Financial Decisions (journal) and Academic Studies:
    http://www.financialdecisionsonline.org

  • 'Conflict in Whispers and Analysts Forecast: Which One Should Be Your Guide'
    http://www.financialdecisionsonline.org/current/Zaima.pdf

  • 'Do Bulls and Bears Listen to Whispers?'
    http://www.financialdecisionsonline.org/current/ZaimaHarjoto.pdf

    Janis Zaima, Professor of Finance
    San Jose State University
    College of Business, Dept of Accounting & Finance
    408-924-3490

    Susan Machuga, Assistant Professor of Accounting
    University of Hartford, Barney School of Business
    860-871-8124


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