The Characteristics of Individual Analysts' Forecasts in Europe

Guido Bolliger,
Additional contact information
Guido Bolliger,: University of Neuchâtel and FAME

FAME Research Paper Series from International Center for Financial Asset Management and Engineering

Abstract: This study investigates the determinants of European financial analysts’ forecasts differential accuracy. We find that European financial analysts forecast accuracy is positively associated with analyst firm specific experience and the number of companies covered by the analysts. Forecast accuracy is negatively associated with analysts’ job experience, the number of countries for which they provide forecasts and the size of the brokerage house they work for. We partly attribute the bad relative forecast accuracy of analysts who work for important brokerage houses to a “local” disadvantage these analysts face relative to their peers who work for medium- and small-sized local brokerage houses. We attribute the absence of learning to the lack of incentive provided to analysts to produce accurate earnings forecasts by the labour market for financial analysis in Europe.

Keywords: Financial analysts; Forecast accuracy; Local advantage; Incentives; Labour market (search for similar items in EconPapers)
JEL-codes: G24 J44 (search for similar items in EconPapers)
Date: 2001-07
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.swissfinanceinstitute.ch/rp33.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.swissfinanceinstitute.ch/rp33.pdf [301 Moved Permanently]--> https://www.sfi.ch/rp33.pdf [302 Found]--> https://www.sfi.ch/en/rp33.pdf)

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:fam:rpseri:rp33

Access Statistics for this paper

More papers in FAME Research Paper Series from International Center for Financial Asset Management and Engineering Contact information at EDIRC.
Bibliographic data for series maintained by Ridima Mittal ().