What Factors Drive Analyst Forecasts?
Posted: 9 Aug 2011
Date Written: August 9, 2011
Using survey data to judge how analyst forecasts are related to evaluations of companies’ industry competitiveness, strategic choices, and internal capabilities, the authors found that analyst forecasts are associated with many of the factors that money managers rate as important in their assessments of analyst contributions. They also found wide variation in ratings consistency across variables among analysts covering the same company. On average, consistency is higher for sell-side analysts than for buy-side analysts.
Keywords: Equity Investments, Fundamental Analysis (Sector, Industry, Company) and the Valuation of Individual Equity Securities, Company Analysis, Portfolio Management, Economic Analysis and Capital Market Expectations, Macroeconomic Forecasts in Determining Asset Class/Security Return Expectations, Behavior
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