Loss Firms and Analysts' Earnings Forecast Errors

The Journal of Financial Statement Analysis, Vol. 1 No. 2

13 Pages Posted: 3 May 2014

See all articles by Lee-Seok Hwang

Lee-Seok Hwang

Seoul National University - College of Business Administration

Ching-Lih Jan

California State University, East Bay

Sudipta Basu

Temple University - Department of Accounting

Date Written: Winter 1996

Abstract

An examination of analysts' accuracy in predicting annual earnings for firms reporting losses and firms reporting profits finds that analysts are ten times more accurate in predicting the earnings of profit firms. They have also improved their predictive ability for profit firms since the mid-1980s. The sample includes eighteen years of coverage by IBES and Compustat analysts.

Suggested Citation

Hwang, Lee-Seok and Jan, Ching-Lih and Basu, Sudipta, Loss Firms and Analysts' Earnings Forecast Errors (Winter 1996). The Journal of Financial Statement Analysis, Vol. 1 No. 2. Available at SSRN: https://ssrn.com/abstract=2428819

Lee-Seok Hwang

Seoul National University - College of Business Administration ( email )

Seoul, 151-742
Korea, Republic of (South Korea)

Ching-Lih Jan

California State University, East Bay ( email )

25800 Carlos Bee Boulevard
Hayward, CA 94542
United States

Sudipta Basu (Contact Author)

Temple University - Department of Accounting ( email )

Philadelphia, PA 19122
United States
215.204.0489 (Phone)
215.204.5587 (Fax)

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