Analyst Forecasting Errors: Additional Evidence

8 Pages Posted: 7 May 2008

See all articles by Lawrence D. Brown

Lawrence D. Brown

Temple University - Department of Accounting

Date Written: 1997

Abstract

Analyst forecasting errors are approximately as large as Dreman and Berry (1995) documented, and an optimistic bias is evident for all years from 1985 through 7996. In contrast to their findings, I show that analyst forecasting errors and bias have decreased over lime. Moreover, the optimistic bias in quarterly forecasts was absent for S&P 500 firms from 1993 through 1996. Analyst forecasting errors are smaller for (1) S&P 500 finns than for other firms; (2) firms with comparatively large amounts of market capitalization, absolute value of earnings forecast, and analyst following; and (3) firms in certain industries.

Suggested Citation

Brown, Lawrence D., Analyst Forecasting Errors: Additional Evidence (1997). Financial Analysts Journal, Vol. 53, No. 6, 1997. Available at SSRN: https://ssrn.com/abstract=1129917

Lawrence D. Brown (Contact Author)

Temple University - Department of Accounting ( email )

Philadelphia, PA 19122
United States

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