Abstract
This article reexamines the relationship between analysts’ forecast accuracy and brokerage firm affiliation. The lowest individual forecast is found to be more accurate than either the mean of all contemporaneous forecasts or the mean of all contemporaneous forecasts by large brokerage firms, and large brokerage firm analysts are more accurate only when their forecasts are lower than those of small brokerage firms. The lower the small brokerage firm forecasts relative to large brokerage firm forecasts, the more forecast accuracy can be improved by incorporating small brokerage firm forecasts. The conclusion is that an analyst9s expected forecast accuracy is more closely related to whether that analyst9s forecast is lower or higher than other analysts’ forecasts than to the analyst9s brokerage firm affiliation.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
