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Determinants of Earnings Forecast Error, Earnings Forecast Revision and Earnings Forecast Accuracy

Determinants of Earnings Forecast Error, Earnings Forecast Revision and Earnings Forecast Accuracy

Paperback

Series: Quantitatives Controlling, Book 1

Investing & Finance

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ISBN10: 3834939366
ISBN13: 9783834939364
Publisher: Springer Nature
Published: Apr 3 2012
Pages: 125
Weight: 0.45
Height: 0.34 Width: 5.89 Depth: 8.26
Language: English
​Earnings forecasts are ubiquitous in today's financial markets. They are essential indicators of future firm performance and a starting point for firm valuation. Extremely inaccurate and overoptimistic forecasts during the most recent financial crisis have raised serious doubts regarding the reliability of such forecasts. This thesis therefore investigates new determinants of forecast errors and accuracy. In addition, new determinants of forecast revisions are examined. More specifically, the thesis answers the following questions: 1) How do analyst incentives lead to forecast errors? 2) How do changes in analyst incentives lead to forecast revisions?, and 3) What factors drive differences in forecast accuracy?

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