RESEARCH ARTICLE
Aggregate analyst characteristics and forecasting performance
Mark Wilson,
Yi (Ava) Wu,
Mark Wilson
The Australian National University, Canberra, Australian Capital Territory, Australia
Search for more papers by this authorCorresponding Author
Yi (Ava) Wu
Department of Accounting and Finance, School of Management, Zhejiang University, Hangzhou, China
Correspondence
Yi (Ava) Wu, Department of Accounting and Finance, School of Management, Zhejiang University, Hangzhou, Zhejiang, China.
Email: [email protected]
Search for more papers by this authorMark Wilson,
Yi (Ava) Wu,
Mark Wilson
The Australian National University, Canberra, Australian Capital Territory, Australia
Search for more papers by this authorCorresponding Author
Yi (Ava) Wu
Department of Accounting and Finance, School of Management, Zhejiang University, Hangzhou, China
Correspondence
Yi (Ava) Wu, Department of Accounting and Finance, School of Management, Zhejiang University, Hangzhou, Zhejiang, China.
Email: [email protected]
Search for more papers by this authorFirst published: 08 May 2024
Abstract
This paper examines the advantages of aggregate measures of analyst characteristics to researchers and investors interested in explaining differences in analysts' forecasting performance. We show while single-characteristic and factor-based measures reflecting attributes such as forecasting experience, access to resources and portfolio complexity vary significantly in the extent to which each explains analyst forecasting performance, equal-weighted composite measures based on single characteristics or on factors extracted from those characteristics are consistently associated with forecasting bias arising from a range of indicators of reduced earnings quality. These aggregate measures of analyst characteristics require no additional data beyond traditional archival sources and offer a useful method of testing the impact of analyst characteristics on their forecasting performance.
Open Research
DATA AVAILABILITY STATEMENT
The data that support the findings of this study are available from Compustat and I/B/E/S. Restrictions apply to the availability of these data, which were used under license for this study. Data are available from the authors with the permission of Compustat and I/B/E/S.
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