Archival data of financial analysts' earnings forecasts in the euro zone: Problems with euro conversions

Sébastien Galanti

Research in International Business and Finance, 2016, vol. 38, issue C, 466-473

Abstract: In multi-country studies, researchers frequently extract data in a single currency rather than in native currencies. This approach can be misleading for financial analysts’ forecasts in the euro zone when researchers are using the IBES database. We suspect that forecasts of earnings before the birth of the euro on January 1, 1999 are kept in national currencies, although they are supposed to be displayed in euros, which can severely distort results concerning earnings forecast accuracy. We propose a simple procedure for checking for the existence of this error, as well as a quick solution to overcome it.

Keywords: Earnings per share; Earnings forecasts; Security analysts; IBES database; Forecasts accuracy; Microeconomic data (search for similar items in EconPapers)
JEL-codes: C18 C55 C81 G14 G24 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Working Paper: Archival data of financial analysts' earnings forecasts in the Euro zone: problems with euro conversions (2016)
Working Paper: Archival data of financial analysts' earnings forecasts in the Euro zone: problems with euro conversions (2016)
Working Paper: Archival data of financial analysts' earnings forecasts in the Euro zone: problems with euro conversions (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:38:y:2016:i:c:p:466-473

DOI: 10.1016/j.ribaf.2016.07.015

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