 Macro disagreement and analyst forecast propertiesRajesh Kumar Sinha Journal of Contemporary Accounting and Economics, 2021, vol. 17, issue 1 Abstract: In this study, I examine whether macro disagreement, a higher-order uncertainty, affects the accuracy and informativeness of analysts’ earnings forecasts. Using macroeconomic dispersion measures from the Survey of Professional Forecasters database as a proxy for macro disagreement, I find that macro disagreement reduces forecast accuracy. I further explore this association for firms that are high in cyclicality and for analysts who enjoy more brokerage resources. The negative relationship between macro disagreement and forecast accuracy is more pronounced for firms that are high in cyclicality. I also find that brokerage resources have a moderating effect on the negative association between macro disagreement and forecast accuracy. I further find that the analyst earnings forecast is less informative to investors when macro disagreement is high. Keywords: Security analysts; Higher-order uncertainty; Macro disagreement (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jocaae:v:17:y:2021:i:1:s1815566920300497 DOI: 10.1016/j.jcae.2020.100235 Access Statistics for this article Journal of Contemporary Accounting and Economics is currently edited by Agnes C.S. Cheng, P. Clarkson, F.A. Gul, Zoltan Matolcsy, Dan Simunic and Ben Srinidhi More articles in Journal of Contemporary Accounting and Economics from Elsevier |
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