Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5087005 | Journal of Accounting and Economics | 2007 | 21 Pages |
Abstract
Considerable debate exists about what analyst experience measures and whether analysts learn from their experiences. Extant research has argued that once innate ability is considered, analysts' general and firm-specific experiences are not relevant to understanding their forecasting performance. We argue that measures of experience need to be expanded to also include task-specific experience. Our results reveal that analysts' forecast accuracy is associated with both their innate ability and task-specific experience. In addition, we find that forecast accuracy and task-specific experience are most highly correlated for those analysts who survive the longest and, thus, presumably have the greatest innate abilities.
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Accounting
Authors
Michael B. Clement, Lisa Koonce, Thomas J. Lopez,