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Journal of Accounting and Economics Vol. 28 No. 1 1999

Expertise in forecasting performance of security analysts

John Jacob1; Thomas Z. Lys2; Margaret A. Neale3

1 University of Colorado Denver · 2 Northwestern University · 3 Stanford University

Abstract

In this study of sell-side analysts’ forecasts, we explore the effects of analyst aptitude, learning-by-doing, and the internal environment of the brokerage house on forecast accuracy. Our results indicate that analysts’ aptitude and brokerage house characteristics are associated with forecast accuracy, while learning-by-doing is only associated with forecast accuracy when we do not control for analysts’ company-specific aptitude in forecasting. It is unlikely that this result is caused by measurement errors because it is robust when we use a sub-sample where we can accurately measure experience.

DOI
10.1016/s0165-4101(99)00016-6
Volume
28
Issue
1
Pages
51-82
Language
en
Sources
bibtex:phds-export.bib openalex crossref

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