Financial Analysts Were Only Wrong by 25%

22 Pages Posted: 27 Nov 2015

See all articles by Andrew Stotz

Andrew Stotz

University of Science and Technology of China (USTC), School of Management, Students ; Thammasat University - Thammasat Business School

Wei Lu

University of Science and Technology of China (USTC) - School of Management

Date Written: November 24, 2015

Abstract

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

Suggested Citation

Stotz, Andrew and Stotz, Andrew and Lu, Wei, Financial Analysts Were Only Wrong by 25% (November 24, 2015). Available at SSRN: https://ssrn.com/abstract=2695216 or http://dx.doi.org/10.2139/ssrn.2695216

Andrew Stotz (Contact Author)

University of Science and Technology of China (USTC), School of Management, Students ( email )

China

Thammasat University - Thammasat Business School ( email )

2 Prachan Road
Pra Nakorn
Bangkok, Bangkok 10200
Thailand

Wei Lu

University of Science and Technology of China (USTC) - School of Management

China

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