When did analyst forecast accuracy benefit from increased cross-border comparability following IFRS adoption in the EU?

Petaibanlue, Jirada; Walker, Martin; Lee, Edward

doi:10.1016/j.irfa.2015.08.004

Cited by 12 publications

(8 citation statements)

References 55 publications

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“…There are also benefits from improvements in information quality. Petaibanlue et al (2015) examine comparability benefits by looking at the increase in the number of peer companies (i.e., companies matched by industry and size) for an IFRS-adopting company and explore how the increase in peers influences analyst forecast accuracy for European companies adopting IFRS. The researchers report improved analyst forecast accuracy for companies that have more new foreign peers.…”

Section: Comparability and Analysts' Information Environmentsmentioning

confidence: 99%

The IASB and Comparability of International Financial Reporting: Research Evidence and Implications

Tarca

2020

Australian Accounting Review

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One motivation for the adoption of International Financial Reporting Standards (IFRS) is to improve the comparability of financial information presented by listed companies and thereby to contribute to improving transparency, accountability and efficiency in financial markets around the world. Beginning from the perspective of the International Accounting Standards Board (IASB) and academic researchers, I describe what is meant by comparability and then I list four areas of research where academics have investigated comparability of IFRS financial statements. Within each area I present examples of studies, usually around the time of adoption of IFRS, and discuss the implications of the research findings for the work of the IASB and the activities of other bodies supporting the implementation of IFRS. Finally, I identify areas of future research that could contribute to public policy deliberations.

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Section: Comparability and Analysts' Information Environmentsmentioning

confidence: 99%

The IASB and Comparability of International Financial Reporting: Research Evidence and Implications

Tarca

2020

Australian Accounting Review

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“…In addition to regulation and enforcement, accounting standards can have a material impact on financial reporting quality, and consequently the precision of financial analysts' earnings forecasts. Previous studies document that forecast accuracy increases significantly following the adoption of International Financial Reporting Standards (IFRS), which significantly enhance the transparency and comparability of financial information (Tan et al 2011;Horton et al 2013;Petaibanlue et al 2015). As well as institutional factors, auditors can have a direct impact on the usefulness of financial information.…”

Section: Financial Analystsmentioning

confidence: 99%

Do Financial Analysts Play a Complementary or Substitutive Role in the Corporate Information Environment? Evidence from Organized Labor.

Chen¹

2020

Preprint

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This paper explores the primary role of financial analysts in the context of unionised firms, where investors have greater information demand. Previous literature suggests that labour unions create substantial uncertainty in firms and undermine the information environment, while another strand of literature argues that analysts devote more effort to generating valuable information through original research in the case of heightened uncertainty or information asymmetry. To date, it is unclear whether financial analysts, as professional information intermediaries, are affected by organised labour. Using a large U.S. sample over the period of 1983-2015, we find that the labour unionisation rate is associated with lower forecast accuracy and higher forecast dispersion, suggesting that financial analysts predominantly play a "complementary role" rather than a "substitutive role" when firms are facing significant uncertainty in human capital. Overall, our study has important implications for managers, financial analysts and regulators, by highlighting the value and hence necessity of non-financial information disclosure specific to a key intangible asset of firms, i.e., their employees.

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“…Previous studies focus on posterior effects of analysts' recommendation (Moshirian et al 2009) and pay little attention to the market situation before the recommendation. Although Petaibanlue et al (2015) examine the period before the recommendations; they only do it based on impact on IFRS adoption. Our study makes a vital contribution to market participants and researchers by analyzing both the pre and post recommendation period and use standardized abnormal returns.…”

Section: Introductionmentioning

confidence: 99%

Loss sensitive investors and positively biased analysts in Hong Kong stock market

Choudhry

Dissanaike

Jayasekera

et al. 2021

Rev Quant Finan Acc

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The Hong Kong stock market is known to be highly volatile. Professional investors have a strong demand for timely information because of the infrequent nature of Hong Kong analysts’ interim reports (Cheng et al., 2003). Our paper provides a comprehensive study of investor reactions to analysts’ recommendations in the Hong Kong stock market from 2009 to 2014 under different sentiment scenarios. We find that analysts’ recommendation upgrades and downgrades deliver significant information to the Hong Kong stock market. However, analysts’ initiation coverages convey little information and bring about limited impact to the stock market. In addition, analysts’ upgrades and downgrades result in significant differential price impacts in bullish and the bearish phases.

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When did analyst forecast accuracy benefit from increased cross-border comparability following IFRS adoption in the EU?

Cited by 12 publications

References 55 publications

The IASB and Comparability of International Financial Reporting: Research Evidence and Implications

The IASB and Comparability of International Financial Reporting: Research Evidence and Implications

Do Financial Analysts Play a Complementary or Substitutive Role in the Corporate Information Environment? Evidence from Organized Labor.

Loss sensitive investors and positively biased analysts in Hong Kong stock market

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