The Quality of Analysts' Earnings Forecasts During the Asian Crisis: Evidence from Singapore

22 Pages Posted: 19 Oct 2003

See all articles by Roger Loh

Roger Loh

Singapore Management University - Lee Kong Chian School of Business

G. Mujtaba Mian

Zayed University

Abstract

We bring together three disparate strands of literature to develop a comprehensive empirical framework to examine the efficiency of security analysts' earnings forecasts in Singapore. We focus specifically on how the increased uncertainty and the negative market sentiment during the period of the Asian crisis affected the quality of earnings forecasts. While we find no evidence of inefficiencies in the pre-crisis period, our results suggest that after the onset of the crisis, analysts (1) issued forecasts that were systematically upward biased; (2) did not fully incorporate the (negative) earnings-related news; and (3) predicted earnings changes which proved too extreme.

JEL Classification: G29, G14, M41, M47

Suggested Citation

Loh, Roger and Mian, G. Mujtaba, The Quality of Analysts' Earnings Forecasts During the Asian Crisis: Evidence from Singapore. Journal of Business Finance & Accounting, Vol. 30, pp. 749-770, June 2003. Available at SSRN: https://ssrn.com/abstract=443753

Roger Loh (Contact Author)

Singapore Management University - Lee Kong Chian School of Business ( email )

Lee Kong Chian School of Business
50 Stamford Rd
Singapore, 178899
Singapore

HOME PAGE: http://www.mysmu.edu/faculty/rogerloh/

G. Mujtaba Mian

Zayed University

P.O. Box 19282
College of Business
Dubai, Dubai 19282
United Arab Emirates
+971568120604 (Phone)

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