The effect of macroeconomic uncertainties and firm-level determinants on analysts' earnings forecast accuracy

Added Title

Determinants of analysts' earnings forecast accuracy

Date of Publication

2010

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Commerce Major in Management of Financial Institutions

Subject Categories

Finance and Financial Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Thesis Adviser

Stephanie Chan

Defense Panel Chair

Alfredo M. Santoyo

Defense Panel Member

Catherine Almonte
John Paolo Rivera

Abstract/Summary

Analyst's forecast earnings are used by a number of individuals for investment decisions hence, the accuracy of these data is necessary. A number of factors affect the accuracy of these forecasts, such as macroeconomic uncertainties and firm-level determinants. The efficient market hypothesis shows the relationship of information to earnings forecast through price. That being said, information such as the determinants used, affect the accuracy of forecasted earnings. A sample size of 30 firms from Philippines and Malaysia that are listed under the industrial sector for a period of five years, from 2004 to 2008 was utilized. Furthermore, the different kinds of panel data, pooled OLS, fixed effects model, and random effects model were employed to check for the relationship between macroeconomic uncertainties and firm-level determinants on analysts' earnings forecast accuracy. Results show that volatilities in GDP growth, firm size, and financial leverage are statistically significant to earnings forecast error. Thus, this study concluded that these variables affect the accuracy of analysts earnings forecasts.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU17226

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

80 leaves : illustrations

Keywords

Business forecasting; Economic forecasting

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