The Relation between Annual Report Disclosures, Analysts? Earnings Forecasts and Analyst Following: Evidence from Singapore

Posted: 10 Apr 2000

See all articles by Li Li Eng

Li Li Eng

National University of Singapore (NUS) - Department of Accounting

Hong Kiat Teo

National University of Singapore (NUS) - Department of Accounting

Abstract

This study examines the impact of annual report disclosures on analysts? forecasts for a sample of firms listed on the Stock Exchange of Singapore (SES). We examine the relation between the level of corporate disclosure and accuracy of analysts? earnings forecasts, dispersion in analysts? earnings forecasts, and the size of analyst following. The results reveal that the level of annual report disclosures is positively related to the accuracy of earnings forecasts by analysts, provided there is no big earnings surprise, and is also positively related to analyst following. We also find that the level of corporate disclosure is negatively related to dispersion in analysts? earnings forecasts provided there is no big earnings surprise. Thus, this study shows that more corporate disclosures by Singapore firms lead to more accuracy and less dispersion in the earnings forecasts among analysts. Furthermore, greater corporate disclosure can also lead to greater analyst interest in the firm.

JEL Classification: M41, M45, G29

Suggested Citation

Eng, Li Li and Teo, Hong Kiat, The Relation between Annual Report Disclosures, Analysts? Earnings Forecasts and Analyst Following: Evidence from Singapore. Available at SSRN: https://ssrn.com/abstract=213240

Li Li Eng (Contact Author)

National University of Singapore (NUS) - Department of Accounting ( email )

1 Business Link
Singapore, 117592
Republic of Singapore
65-8748001 (Phone)
65-7792083 (Fax)

Hong Kiat Teo

National University of Singapore (NUS) - Department of Accounting

1 Business Link
Singapore, 117592
Republic of Singapore

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