Does analysts’ industrial concentration affect the quality of their forecasts?

IF 1.5 Q3 BUSINESS, FINANCE
Guanming He, Yun Sun, April Zhichao Li
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引用次数: 0

Abstract

Abstract We examine the association between financial analysts’ industrial concentration and the quality of their earnings forecasts. We find that analysts’ forecast quality, measured by forecast accuracy, forecast informativeness, and forecast timeliness, is positively associated with analysts’ industrial concentration on firm coverage, suggesting that allocation of effort and resources to the concentrated industries helps promote the quality of earnings forecasts. We also find that the positive relation of analysts’ industrial concentration with forecast accuracy and informativeness (forecast timeliness) is more (less) pronounced for firms faced with fiercer industrial product market competition, higher firm-specific risk, and/or higher information opacity. Overall, our results highlight the importance of analysts’ industrial concentration in contributing to the quality of their earnings forecasts.
分析师的产业集中度会影响他们预测的质量吗?
摘要本文研究了金融分析师的产业集中度与其盈利预测质量之间的关系。我们发现,分析师的预测质量(以预测准确性、预测信息量和预测及时性衡量)与分析师对公司覆盖的行业集中度呈正相关,这表明将精力和资源配置到集中的行业有助于提高盈利预测的质量。我们还发现,对于面临更激烈的工业品市场竞争、更高的企业特有风险和/或更高的信息不透明度的企业,分析师的行业集中度与预测准确性和信息及时性之间的正相关更为显著(不显著)。总体而言,我们的结果突出了分析师的产业集中度对其盈利预测质量的重要性。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
3.20
自引率
0.00%
发文量
21
期刊介绍: The journal Financial Markets and Portfolio Management invites submissions of original research articles in all areas of finance, especially in – but not limited to – financial markets, portfolio choice and wealth management, asset pricing, risk management, and regulation. Its principal objective is to publish high-quality articles of innovative research and practical application. The readers of Financial Markets and Portfolio Management are academics and professionals in finance and economics, especially in the areas of asset management. FMPM publishes academic and applied research articles, shorter ''Perspectives'' and survey articles on current topics of interest to the financial community, as well as book reviews. All article submissions are subject to a double-blind peer review. http://www.fmpm.org Officially cited as: Financ Mark Portf Manag
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