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

被引：1

作者：

He, Guanming ^{[1
]}

Sun, Yun ^{[2
]}

Li, April Zhichao ^{[3
]}

机构：

[1] Univ Durham, Durham Univ, Business Sch, Mill Hill Lane, Durham DH1 3LB, England

[2] City Univ London, Bayes Business Sch, 106 Bunhill Row, London EC1Y 8TZ, England

[3] Univ Exeter, Business Sch, Rennes Dr, Exeter EX4 4PU, Devon, England

来源：

FINANCIAL MARKETS AND PORTFOLIO MANAGEMENT | 2024年 / 38卷 / 01期

关键词：

Industry-specific information; Industrial concentration; Forecast accuracy; Forecast informativeness; Forecast timeliness; G11; G14; G24; M41; INSTITUTIONAL INVESTORS; FINANCIAL ANALYSTS; INFORMATION; DISCLOSURE; ACCURACY; SPECIALIZATION; MARKET; PERFORMANCE; COMPLEXITY; EXPERTISE;

D O I：

10.1007/s11408-023-00435-0

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

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.

引用

页码：37 / 91

页数：55

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