International Differences in Analyst Forecast Properties

57 Pages Posted: 2 Jul 2001

See all articles by James S. Ang

James S. Ang

Florida State University; Florida State University - College of Law

Stephen John Ciccone

University of New Hampshire - Department of Accounting & Finance

Date Written: undated

Abstract

This paper examines international differences in analyst forecast properties using 42 countries. Properties of the forecasts, specifically dispersion and error, are hypothesized to be a function of country-specific, firm-specific, and discretionary components, the latter component including analyst bias and management manipulation of their firm's information environment. The results suggest that country-specific (e.g., corporate governance structures) and firm-specific (e.g., size) components help determine dispersion and error. The most important component, however, appears to be the discretionary component, as analyzed by profitability. Firms with losses are associated with significantly higher dispersion and error and overwhelming percentages of forecast optimism.

Keywords: Analyst forecasts, transparency, corporate governance

JEL Classification: D80, F30, G24, G29, M41

Suggested Citation

Ang, James S. and Ciccone, Stephen J., International Differences in Analyst Forecast Properties (undated). Available at SSRN: https://ssrn.com/abstract=275091 or http://dx.doi.org/10.2139/ssrn.275091

James S. Ang

Florida State University ( email )

College of Business
Tallahassee, FL 32306-1042
United States
904-644-8208 (Phone)

Florida State University - College of Law ( email )

425 W. Jefferson Street
Tallahassee, FL 32306
United States

Stephen J. Ciccone (Contact Author)

University of New Hampshire - Department of Accounting & Finance ( email )

Durham, NH 03824
United States
603-862-3343 (Phone)
603-862-3383 (Fax)

HOME PAGE: http://pubpages.unh.edu/~sciccone

Register to save articles to
your library

Register

Paper statistics

Downloads
1,169
Abstract Views
4,718
rank
17,302
PlumX Metrics