Risk information disclosure and its impact on analyst forecast accuracy
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Published:2020-07-23
Issue:
Volume:
Page:314-324
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ISSN:2665-6744
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Container-title:Estudios Gerenciales
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language:
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Short-container-title:estud.gerenc.
Author:
Tirado-Beltrán José MiguelORCID,
Cabedo-Semper J. DavidORCID
Abstract
This paper aims to analyse the influence of risk information disclosure on the accuracy of financial analysts’ earnings forecasts for the Spanish stock market. To do this, we performed a regression analysis with panel data on a sample comprised of non-financial firms listed on the Madrid Stock Exchange from 2010 to 2015. The results of the study show that risk information disclosed by firms does not help to reduce analysts’ uncertainty levels nor enable them to make more accurate forecasts of future profits. Furthermore, separately testing verified and unverified risk information disclosure confirms that there is no relationship between the risk information disclosed and the perception that analysts have on companies’ levels of risk.
Publisher
Universidad Icesi
Subject
Management of Technology and Innovation,Marketing,Strategy and Management,Economics and Econometrics,Finance,Business and International Management