Geographic Segment Disclosure and the Predictive Ability of the Earnings Data

Nasrollah Ahadiat
Additional contact information
Nasrollah Ahadiat: California State Polytechnic University

Journal of International Business Studies, 1993, vol. 24, issue 2, 357-371

Abstract: Standards of segment reporting disclosure of the enterprise's foreign operations by geographic area [FASB 1976, Statement No. 14]. This information is believed to be useful in predicting the future prospects of the enterprise as a whole. This paper examines the predictive value of geographic earnings vis-à-vis consolidated earnings figures. Time-series methodology is used for this analysis. Forecasting models were developed for both segmental and consolidated income series. To test the predictive ability of each set of data, earnings forecasts were made. Both the enterprise's segmental and consolidated models were used for these predictions. The result indicate that, although consolidated income series provide a reasonably adequate forecast of income, geographically segmented earnings improve the accuracy of predictions. Further, the findings suggest that the predictive ability of foreign earning is slightly improved (in eleven out of fifteen cases) with more data disaggregation.© 1993 JIBS. Journal of International Business Studies (1993) 24, 357–371

Date: 1993
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.palgrave-journals.com/jibs/journal/v24/n2/pdf/8490236a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/jibs/journal/v24/n2/full/8490236a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

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: https://EconPapers.repec.org/RePEc:pal:jintbs:v:24:y:1993:i:2:p:357-371

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/41267/PS2

Access Statistics for this article

Journal of International Business Studies is currently edited by John Cantwell

More articles in Journal of International Business Studies from Palgrave Macmillan, Academy of International Business
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().