An Improved Earnings Forecasting Model

34 Pages Posted: 29 Jun 2016

See all articles by Richard D. F. Harris

Richard D. F. Harris

University of Bristol

Pengguo Wang

Xfi, University of Exeter

Date Written: April 2013

Abstract

In this paper, we employ the earnings model developed in Ashton and Wang (2013) to forecast the one- to three-year ahead earnings of individual companies. We find that the model produces forecasts of future earnings that are less biased and more informative than both the consensus analysts’ earnings forecasts reported by IBES and the recently developed model-based forecasts of Hou, van Dijk and Zhang (2012).

Keywords: Earnings forecasts; Cross-sectional earnings model; Bias; Earnings

JEL Classification: G12, G29, M40, M41

Suggested Citation

Harris, Richard D. F. and Wang, Pengguo, An Improved Earnings Forecasting Model (April 2013). Available at SSRN: https://ssrn.com/abstract=2802019 or http://dx.doi.org/10.2139/ssrn.2802019

Richard D. F. Harris

University of Bristol ( email )

University of Bristol,
Senate House, Tyndall Avenue
Bristol, BS8 ITH
United Kingdom

Pengguo Wang (Contact Author)

Xfi, University of Exeter ( email )

Streatham Court
Exeter, EX4 4PU
United Kingdom

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