Öz
This study examines the relationship between earnings forecasts and task uncertainty. Company uncertainty is applied as a proxy for task difficulty and is investigated in terms of its effect on analysts’ forecasts in three aspects: forecast accuracy, the optimism degree of the forecast, and the timely response to public information. The current study concludes that company uncertainty is positively related to forecast inaccuracy, positively related to the analysts’ forecast optimism level, and is negatively related to revision timeliness. This finding suggests that if a company has a high uncertainty, then predicting the company’s future earnings is difficult for financial analysts. Furthermore, when new public information is released (such as an earnings announcement), much time is needed to interpret this new information and to revise prior forecasts. We contribute to extant literature in the following ways: First, this study clarifies the effect of firm uncertainty on analyst performance. Second, we remind investors to be careful when taking an analyst’s research reports as a reference for investment decisions.
Ayrıntılar
| Bölüm | Articles |
|---|---|
| Yazarlar | |
| Yayımlanma Tarihi | 15 Ocak 2016 |
| Yayımlandığı Sayı | Yıl 2015 Cilt: 4 Sayı: 4 |
Journal of Business, Economics and Finance (JBEF) is a scientific, academic, double blind peer-reviewed, quarterly and open-access journal. The publication language is English. The journal publishes four issues a year. The issuing months are March, June, September and December. The journal aims to provide a research source for all practitioners, policy makers and researchers working in the areas of business, economics and finance. The Editor of JBEF invites all manuscripts that that cover theoretical and/or applied researches on topics related to the interest areas of the Journal. JBEF charges no submission or publication fee.
Ethics
Policy - JBEF applies the standards of
Committee on Publication Ethics (COPE). JBEF is committed to the academic
community ensuring ethics and quality of manuscripts in publications.
Plagiarism is strictly forbidden and the manuscripts found to be plagiarized
will not be accepted or if published will be removed from the publication. Authors
must certify that their manuscripts are their original work. Plagiarism,
duplicate, data fabrication and redundant publications are forbidden. The
manuscripts are subject to plagiarism check by iThenticate or similar. All manuscript submissions must provide a similarity report (up to 15% excluding quotes, bibliography, abstract, method).
Open Access - All research articles published in PressAcademia Journals are fully open access; immediately freely available to read, download and share. Articles are published under the terms of a Creative Commons license which permits use, distribution and reproduction in any medium, provided the original work is properly cited. Open access is a property of individual works, not necessarily journals or publishers. Community standards, rather than copyright law, will continue to provide the mechanism for enforcement of proper attribution and responsible use of the published work, as they do now.