Does the financial analysts' usage of non-financial information influence the analysts' forecast accuracy? Some evidence from the Belgian sell-side financial analyst (original) (raw)
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Journal of International Financial Management and Accounting, 2003
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2015
During the last years researchers have produced an array of empirical evidences that have long offered conflicting conclusions according to how biased are the information provided by analysts. One of the reasons for such empirical controversy is that too little is known in the literature about analysts’ actual loss functions, and the usual methodologies thus leave unresolved the questions of what cause asymmetries in forecast errors distribution and to what extent analysts fully reflect public available information. In this paper we implement an approach that allow us to disaggregate analyst forecast errors into an error related with past accounting information and another error related with other information, in order to evaluate the extent in which analyst forecast errors are related with information from these two different sources. Our analyses lead to two conclusions: first, accurate forecasts can be done even when it is associated with large positive accounting errors and larg...
Bias and Efficiency: A Comparison of Analyst Forecasts and Management Forecasts
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