The characteristics of individual analysts’ forecasts in Europe

Bolliger, Guido

doi:10.1016/j.jbankfin.2003.09.011

Cited by 79 publications

(32 citation statements)

References 30 publications

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“…Performance can be measured by forecast accuracy and by forecast impact on stock market fluctuations. The characteristics of these performance measurements have been related to timeliness (Cooper et al, 2001;Kim et al, 2011), the number of firms that the forecaster follows (Kim et al, 2011;Bolliger, 2004), the firm-specific experience of the forecaster (Bolliger, 2004), age (Bolliger, 2004), the size of the firm for which the forecasts are created and the size of the company where the forecaster works (Kim et al, 2011;Bolliger, 2004), and whether the forecaster works individually or in a team (Brown and Hugon, 2009).…”

Section: Literature Reviewmentioning

confidence: 99%

How Informative are the Unpredictable Components of Earnings Forecasts?

Bruijn

Franses

2015

SSRN Journal

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Section: Literature Reviewmentioning

confidence: 99%

How Informative are the Unpredictable Components of Earnings Forecasts?

Bruijn

Franses

2015

SSRN Journal

View full text Add to dashboard Cite

“…In a French context, Bolliger (2003) investigates the determinants of financial analysts' forecasts differential accuracy during the 1995-1999 period. He examines the relation between forecast accuracy and financial analysts' experience, the size of the brokerage houses (employer) and the complexity of their portfolios.…”

Section: Introductionmentioning

confidence: 99%

“…This study is the first to consider herding behavior as a determinant of financial analysts' forecasts differential accuracy in a French context. To our knowledge, Bolliger (2003) is the only study to investigate the determinants of financial analysts' forecasts differential accuracy in 14 different European stock markets (France among other countries). Our study is similar in spirit to Bolliger (2003) in that we investigate whether forecast accuracy is associated with experience, broker size, number of firms followed by analyst and forecast horizon, but our study differs from Bolliger (2003) from three important ways.…”

Section: Introductionmentioning

confidence: 99%

“…To our knowledge, Bolliger (2003) is the only study to investigate the determinants of financial analysts' forecasts differential accuracy in 14 different European stock markets (France among other countries). Our study is similar in spirit to Bolliger (2003) in that we investigate whether forecast accuracy is associated with experience, broker size, number of firms followed by analyst and forecast horizon, but our study differs from Bolliger (2003) from three important ways. First, we extend Bolliger (2003) by examining the effect of herding behaviour among financial analysts for explaining forecast errors.…”

Section: Introductionmentioning

confidence: 99%

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Does herding behavior affect analysts’ earnings forecasts? A Study of French Listed Firms

Youssef¹,

Rajhi²

2010

IJEF

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This paper examines factors that seem to influence analysts' forecasts accuracy over the period 1996-2000. We aim to identify superior analysts in terms of forecasting accuracy. First, our analyses show that more accurate analysts are not more experienced nor have a fewer number of firms followed. However more accurate analysts work for larger brokerage houses, issue shorter forecast horizon. Furthermore, analysts who distort their own information and tend to herd provide biased forecasts. Then, we investigate whether analyst experience and /or brokerage's size attenuate the positive association between herding behaviour and forecast errors. We predict that more experienced and employed by larger brokerages have less incentives to herd. We find a negative and significant association between herding-related-errors and analysts' experience, but we fail to find evidence of the reduction in the association between herding and forecasts errors as brokerage size increases.

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“…But around the time of the introduction of EMU, a debate on the benefits of geographical versus industrial diversification erupted, and many held that the first step should now be to set the sectoral allocations. 4 In recent years sector investment funds emerged and research departments of investment firms are often reorganized by sectors (see, for example, Bolliger, 2001). All this suggests that diversification across sectors is now often viewed as more effective than across countries within the EMU, or at least as complementary to geographical diversification (see Ehling and Ramos, 2002;Ramos, 2003;Gerard, Hillion and De Roon, 2003).…”

Section: Introductionmentioning

confidence: 99%

Country and Sector Effects in International Stock Returns Revisited

Moor

Sercu

2006

SSRN Journal

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The starting point of this paper is the Heston and Rouwenhorst (1994) methodology, which decomposes stock returns into four factors: market factor, country factor, sector factor and idiosyncratic factor; all with unit exposures. First, we explain why discarding small firms may overstate the relative importance of sector effects in international stock returns: small caps turn out to have an above average variability (after controlling for sector and country effects) and to be less exposed to their global sector index than large caps. Secondly, we show that the unit exposure assumption in Heston and Rouwenhorst (1994) is empirically not valid, and we accordingly generalize the HR-methodology by taking into account the unequal distribution of exposures along countries and sectors. Thirdly, we decompose the stacked variance of exposures and factors into his moments and correct it for estimation error in the

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The characteristics of individual analysts’ forecasts in Europe

Cited by 79 publications

References 30 publications

How Informative are the Unpredictable Components of Earnings Forecasts?

How Informative are the Unpredictable Components of Earnings Forecasts?

Does herding behavior affect analysts’ earnings forecasts? A Study of French Listed Firms

Country and Sector Effects in International Stock Returns Revisited

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