Analysts' Forecast Accuracy in Germany: The Effect of Different Accounting Principles and Changes of Accounting Principles

BuR Business Research Journal, Vol. 1, No. 1, May 2008

29 Pages Posted: 3 Feb 2008

See all articles by Jürgen Ernstberger

Jürgen Ernstberger

Technische Universität München

Simon Krotter

affiliation not provided to SSRN

Christian Stadler

University of London - Royal Holloway College

Date Written: January 31, 2008

Abstract

This paper assesses the influence of an adoption of IAS/IFRS or US GAAP on the financial analysts' forecast accuracy in an homogenous institutional framework. Our findings suggest that the forecast accuracy is higher for estimates based on IFRS or US GAAP data than for forecasts based on German GAAP data. Moreover, in the year of switching from German GAAP to US GAAP the forecast accuracy is lower than in other years. The paper contributes to prior research by providing evidence about the usefulness of international accounting data and about the adoption effects of a change to such accounting principles.

Keywords: IAS, IFRS, IAS/IFRS, US GAAP, HGB, German GAAP, analysts' forecast accuracy, Germany, accounting, financial analysts, IFRS adoption, adoption effect, accounting principle change

JEL Classification: M41, M44, G14, G24, G29

Suggested Citation

Ernstberger, Jürgen and Krotter, Simon and Stadler, Christian, Analysts' Forecast Accuracy in Germany: The Effect of Different Accounting Principles and Changes of Accounting Principles (January 31, 2008). BuR Business Research Journal, Vol. 1, No. 1, May 2008, Available at SSRN: https://ssrn.com/abstract=1089006

Jürgen Ernstberger (Contact Author)

Technische Universität München ( email )

Arcisstraße 21
Munich, 80333
Germany

Simon Krotter

affiliation not provided to SSRN

Christian Stadler

University of London - Royal Holloway College ( email )

Egham
Surrey, Egham TW20 0EX
United Kingdom

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
570
Abstract Views
2,825
rank
61,551
PlumX Metrics