Financial Analysts Were Only Wrong by 25%
22 Pages Posted: 27 Nov 2015
Date Written: November 24, 2015
Over the past decade, financial analysts worldwide have produced company earnings forecasts that were wrong by an optimistic excess of 25%. This paper is a descriptive review of analyst performance at providing company earnings forecast for all listed companies in the world. The universe is 74% comprised of developed market companies while the balance is made up from emerging countries. The average company size is US$5,541m.
Keywords: Analyst forecasts, Earnings forecast accuracy
JEL Classification: C53, G12, G14
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