Work

The Quality of Analysts’ Earnings Forecasts During the Asian Crisis: Evidence from Singapore

Year: 2003

Type: article

Abstract: We bring together three disparate strands of literature to develop a comprehensive empirical framework to examine the efficiency of security analysts' earnings forecasts in Singapore. We focus specifically on how the increased uncertainty and the negative market sentiment during the period of the Asian crisis affected the quality of earnings forecasts. While we find no evidence of inefficiencies in the pre‐crisis period, our results suggest that after the onset of the crisis, analysts (1) issued forecasts that were systematically upward biased; (2) did not fully incorporate the (negative) earnings‐related news; and (3) predicted earnings changes which proved too extreme.

Source: Journal of Business Finance &amp Accounting

DOI: 10.1111/1468-5957.05443

Authors: Roger K. Loh, Mujtaba Mian

Institutions: Singapore Management University, National University of Singapore, Zayed University

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2094518271

FWCI: 2.464

Cites: 17

Cited by: 24

Related to: 10