Analyst forecast accuracy and firm growth

Authors

Philip Siegel
Jeffrey Lessard
Khondkar Karim

Abstract

This study examines the affect of business segment industry specialization as a supplement to portfolio complexity on forecast error and Tobin’s Q. After controlling for diversification and growth potential, forecast error is negatively related to business segment industry specialization. Diversification (high growth firms) increases (decreases) forecast error. High growth, focused firms are associated with noncomplex portfolios and business segment industry specialization. Within a simultaneous equation model, forecast error does not predict the firm’s Tobin Q ratio; however, Tobin’s Q does predict whether analysts forecast accurately.

Publication Date

2011

Comments

Note: imported from RIT’s Digital Media Library running on DSpace to RIT Scholar Works in February 2014.

Document Type

Article

Department, Program, or Center

Accounting (SCB)

Recommended Citation

Siegel, Philip; Lessard, Jeffrey; and Karim, Khondkar, "Analyst forecast accuracy and firm growth" (2011). World Scientific, vol. 09 (),Accessed from
https://repository.rit.edu/article/616

Campus

RIT – Main Campus