Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
9726740 | Journal of Multinational Financial Management | 2005 | 21 Pages |
Abstract
We analyse the relative importance of country-, industry-, and firm-specific factors in explaining the source of variation in the forecast errors made by financial analysts with respect to Pacific Basin emerging markets. Following [Heston, S. L., Rouwenhorst, K.G., 1994. Does industrial structure explain the benefits of international diversification? Journal of Financial Economics 36, 3-27], we first estimate each factor, and then decompose the variance of forecast errors into different effects. We document that the differences among countries, industrial sectors, or analyst following offer a weak explanation for the differences in forecast errors and forecast biases on eight Asian emerging markets examined over the 1990-2001 period. The type of earnings - profits or losses - and the variation of earnings - growth or fall - appear to be the two main explanation sources for the performance of financial analysts.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Alain Coën, Aurélie Desfleurs, Jean-François L'Her, Jean-Marc Suret,