Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1004158 | The British Accounting Review | 2007 | 13 Pages |
The aim of this study is to provide a detailed analysis of the multi-dimensional characteristics of segmental reporting, and their impact on improving investor-insight. We do this by examining the ability of segmental reporting characteristics among FTSE-100 firms to explain variation in the accuracy of analysts’ forecasts of earnings per share. We find that analyst-insight is significantly improved by the provision of data within a business-geographical matrix format, consistent with prior ‘laboratory’ evidence and UK analysts’ stated opinions in surveys. We also find that analyst-insight is improved where firms provide information regarding differences between their geographic markets and origins. In addition, analysts obtain improved insight from business segments that have a high degree of comparability to their respective industry sectors and where geographic segments are reported in a detailed manner.