Hardening Soft Information: Evidence on Analyst Integration Costs

arXiv:2505.12269v4 Announce Type: replace-cross Abstract: We examine how the cost of transforming qualitative information into precise numerical estimates--a form of integration cost--creates a structural friction in expectations formation. To isolate this integration cost from the costs of information awareness and acquisition, we exploit sell-side analyst reports, in which the same forecaster simultaneously produces textual narratives and numerical forecasts. Because the information underlying the text has already been acquired, any systematic gap between the two outputs can be attributed to

This content is for informational purposes only and is not professional advice. Specifications, prices, plan tiers, and features change frequently and may differ from what is shown here; verify current details on the manufacturer's or company's official page before purchasing. Ratings are based on analysis of published documentation, not independent lab testing.