Financial analysts’ earnings forecasts for loss firms

Abstract

Refers to previous research on the accuracy of financial analysts’ earnings forecasts and explores the differences in accuracy for loss making and non‐loss making firms using 1985‐1993 US data. Finds an optimistic bias for both types of firms (smaller for more recent forecasts); which is greater for loss making firms even after controlling for forecast horizon, year of forecast and industry. Considers possible explanations for this finding and consistency with other research.

Citation

Das, S. (1998), "Financial analysts’ earnings forecasts for loss firms", Managerial Finance, Vol. 24 No. 6, pp. 39-50. https://doi.org/10.1108/03074359810765570