Analysts' Accuracy of Estimation and the Relative Trading Volume
| Contribuinte(s) |
Swedish School of Economics and Business Administration, Department of Finance and Statistics, Finance Svenska handelshögskolan, institutionen för finansiell ekonomi och ekonomisk statistik, finansiell ekonomi |
|---|---|
| Data(s) |
2002
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| Resumo |
This study contributes to the neglect effect literature by looking at the relative trading volume in terms of value. The results for the Swedish market show a significant positive relationship between the accuracy of estimation and the relative trading volume. Market capitalisation and analyst coverage have in prior studies been used as proxies for neglect. These measures however, do not take into account the effort analysts put in when estimating corporate pre-tax profits. I also find evidence that the industry of the firm influence the accuracy of estimation. In addition, supporting earlier findings, loss making firms are associated with larger forecasting errors. Further, I find that the average forecast error increased in the year 2000 – in Sweden. This study contributes to the neglect effect literature by looking at the relative trading volume in terms of value. The results for the Swedish market show a significant positive relationship between the accuracy of estimation and the relative trading volume. Market capitalisation and analyst coverage have in prior studies been used as proxies for neglect. These measures however, do not take into account the effort analysts put in when estimating corporate pre-tax profits. I also find evidence that the industry of the firm influence the accuracy of estimation. In addition, supporting earlier findings, loss making firms are associated with larger forecasting errors. Further, I find that the average forecast error increased in the year 2000 – in Sweden. |
| Formato |
1837 bytes 75052 bytes application/pdf text/plain |
| Identificador |
http://hdl.handle.net/10227/162 URN:ISBN:951-555-717-8 951-555-717-8 0357-4598 |
| Idioma(s) |
en |
| Publicador |
Swedish School of Economics and Business Administration Svenska handelshögskolan |
| Relação |
Working Papers 468 |
| Direitos |
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| Palavras-Chave | #financial analysts' estimates #accuracy of estimation #neglect effect #Finance |
| Tipo |
Text |
