How certain firm-specific characteristics affect the accuracy and dispersion of analysts' forecasts. A latent variables approach

Mohinder Parkash, Dan S Dhaliwal, William K. Salatka

Research output: Contribution to journalArticle

15 Citations (Scopus)

Abstract

We suggest that analysts' uncertainty in predicting earnings is a function of: (1) the uncertainty due to production, investment, and financing (PIF) activities, and (2) the amount of information available about the firm. We use a latent variable approach to explore this framework. Observed indicator variables are used to represent the underlying unobserved attributes. The results show that analysts' uncertainty is a positive function of business risk, financial risk, and ownership concentration, and is negatively related to the amount of information.

Original languageEnglish (US)
Pages (from-to)161-169
Number of pages9
JournalJournal of Business Research
Volume34
Issue number3
DOIs
StatePublished - 1995

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Firm-specific characteristics
Uncertainty
Latent variables
Analysts' forecasts
Analysts
Business risk
Financing
Ownership concentration
Financial risk

ASJC Scopus subject areas

  • Marketing

Cite this

How certain firm-specific characteristics affect the accuracy and dispersion of analysts' forecasts. A latent variables approach. / Parkash, Mohinder; Dhaliwal, Dan S; Salatka, William K.

In: Journal of Business Research, Vol. 34, No. 3, 1995, p. 161-169.

Research output: Contribution to journalArticle

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