Australasian Accounting Business and Finance Journal

Article Title

Financial Analysts' Forecast Accuracy : Before and After the Introduction of AIFRS

Authors

Chee Seng Cheong, University of Adelaide
Mahmud Al Masum, University of Adelaide

Abstract

We examine whether financial analysts’ forecast accuracy differs between the pre- and post- adoption of Australian Equivalents to the International Financial Reporting Standards (AIFRS). We find that forecast accuracy has improved after Australia adopted AIFRS. As a secondary objective, this paper also investigates the role of financial analysts in reducing information asymmetry in today’s Australian capital market. We find weak evidence that more analysts following a stock do not help to improve forecast accuracy by bringing more firm-specific information to the market.

Recommended Citation

Cheong, Chee Seng and Al Masum, Mahmud, Financial Analysts' Forecast Accuracy : Before and After the Introduction of AIFRS, Australasian Accounting Business and Finance Journal, 4(3), 2010, 65-81.
Available at:http://ro.uow.edu.au/aabfj/vol4/iss3/5