International diversification and analysts' forecast accuracy and bias

• 成果类型: Article
• 署名作者: Duru, A; Reeb, DM
• 署名单位: American University
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr.2002.77.2.415
• 发表日期: 2002
• 页码: 415-433
• 关键词: predicting earnings; ability; predictability; expectations; superiority; disclosure; selection; entity

摘要

We investigate the association between corporate international diversification and the accuracy and bias of consensus analysts' earnings forecasts. We find that greater corporate international diversification is associated with less accurate and more optimistic forecasts. Our results suggest that international diversification reflects unique dimensions of forecasting difficulty that are not captured in previously identified determinants. This evidence suggests that as firms become more geographically diversified, forecasting their earnings becomes more complex.