The relation between business life cycle, ultimate controlling shareholder's forecast accuracy
碩士 === 國立中正大學 === 會計學研究所 === 93 === Analysts, as an informational intermediary, produce research reports that include forecasts of future earnings, thus fulfill an important role in capital market. The objective of this paper is to investigate the association between analyst forecast error and dispe...
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| Format: | Others |
| Language: | zh-TW |
| Published: |
2005
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| Online Access: | http://ndltd.ncl.edu.tw/handle/56982755565380200773 |
| Summary: | 碩士 === 國立中正大學 === 會計學研究所 === 93 === Analysts, as an informational intermediary, produce research reports that include forecasts of future earnings, thus fulfill an important role in capital market. The objective of this paper is to investigate the association between analyst forecast error and dispersion and ultimate controlling shareholder’s ownership structure in the context of firm life cycle. We divide our sample into various life cycle portfolios based on methods developed by Anthony and Ramesh(1992). Corporate governance structure is measured as the divergence between the ultimate owner’s control and the equity ownership level. Consistent with our hypothesis, we document that improving corporate governance structure may lead to reduction in analyst forecast error and dispersion. We also find that analyst forecast error and dispersion decrease from the growth to the stagnant stages. Finally, the findings show that the level of decrease in forecast error and forecast dispersion provided by corporate governance is greater for growth firms than for stagnant firms.
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