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

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 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

Wei Lu

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

China

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