Economics at your fingertips  

The importance of brokerage house size in determining the utility of IFRS8 segment data to financial analysts

Ibrahim Al-Aamri, Simon Hussain, Chen Su and Hwa-Hsien Hsu

Journal of International Accounting, Auditing and Taxation, 2022, vol. 47, issue C

Abstract: This paper reveals the important role played by brokerage house size in determining the utility of segment data to financial analysts. Brokerage house size is a proxy both for analysts’ access to company managers and for their access to in-house expertise. Using data for large UK firms, we reveal that the shift to International Financial Reporting Standard 8 (IFRS8) led to significant improvements in forecast accuracy for analysts in large brokerage houses but not for those in small brokerage houses. In addition, the forecasting ability of analysts in smaller brokerage houses was impaired when segments represented lines-of-business. No such effect was evident in the case of large brokers’ analysts. We link these findings to the improved insight which analysts in large brokerages obtained from their superior access to managers and in-house support.

Keywords: Financial analysts; Earnings forecasts; Segment reporting; Brokerage size; UK; IFRS8 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

DOI: 10.1016/j.intaccaudtax.2022.100472

Access Statistics for this article

Journal of International Accounting, Auditing and Taxation is currently edited by R. Larson

More articles in Journal of International Accounting, Auditing and Taxation from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

Page updated 2022-11-12
Handle: RePEc:eee:jiaata:v:47:y:2022:i:c:s1061951822000271