Earnings forecasts are ubiquitous in today’s financial markets. They are essential indicators of future firm performance and a starting point for firm valuation. Extremely inaccurate and overoptimistic forecasts during the most recent financial crisis have raised serious doubts regarding the reliability of such forecasts. This thesis therefore investigates new determinants of forecast errors and accuracy. In addition, new determinants of forecast revisions are examined. More specifically, the thesis answers the following questions: 1) How do analyst incentives lead to forecast errors? 2) How do changes in analyst incentives lead to forecast revisions?, and 3) What factors drive differences in forecast accuracy?

Keywords

Authors and Affiliations

Cologne, Germany

Sebastian Gell

About the author

Dr. Sebastian Gell received his doctoral degree from the University of Cologne under the supervision of Prof. Dr. Carsten Homburg (Department of Business Administration and Management Accounting).

Bibliographic Information

Book Title: Determinants of Earnings Forecast Error, Earnings Forecast Revision and Earnings Forecast Accuracy
Authors: Sebastian Gell
Series Title: Quantitatives Controlling
DOI: https://doi.org/10.1007/978-3-8349-3937-1
Publisher: Gabler Verlag Wiesbaden
eBook Packages: Business and Economics, Economics and Finance (R0)
Copyright Information: Springer Gabler | Springer Fachmedien Wiesbaden 2012
Softcover ISBN: 978-3-8349-3936-4Published: 03 April 2012
eBook ISBN: 978-3-8349-3937-1Published: 26 March 2012
Series ISSN: 2945-8390
Series E-ISSN: 2945-8404
Edition Number: 1
Number of Pages: XXIV, 125
Topics: Finance, general

Publish with us

Policies and ethics

Authors:

Sections

Buy it now

Buying options

Other ways to access

Table of contents (5 chapters)

Front Matter

Introduction

Determinants of earnings forecast errors

Using forecast errors to explain revisions

Impact of forecast effort and investment advice on accuracy

Concluding remarks

Back Matter

About this book