Abstract
Earnings forecasts are ubiquitous in today's financial markets. They are essential indicators of future firm performance and a starting point for firm valuation. Investors heavily rely on forecasts when making investment decisions. The extremely inaccurate and overoptimistic forecasts during the most recent financial crisis have raised serious doubts regarding the reliability of such forecasts. In addition, the academic literature attributes systematic biases in forecasts to analyst incentives other than providing truthful earnings forecasts. These incentives result from analysts serving market participants with different needs.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2012 Gabler Verlag | Springer Fachmedien Wiesbaden
About this chapter
Cite this chapter
Gell, S. (2012). Introduction. In: Determinants of Earnings Forecast Error, Earnings Forecast Revision and Earnings Forecast Accuracy. Quantitatives Controlling. Gabler Verlag. https://doi.org/10.1007/978-3-8349-3937-1_1
Download citation
DOI: https://doi.org/10.1007/978-3-8349-3937-1_1
Publisher Name: Gabler Verlag
Print ISBN: 978-3-8349-3936-4
Online ISBN: 978-3-8349-3937-1
eBook Packages: Business and EconomicsEconomics and Finance (R0)