Open AccessAdoption of IFRS and the Properties of Analysts’ Forecasts: The Brazilian Case
Author(s) -
Antônio Lopo Martinez,
Miguel Carlos Ramos Dumer
Publication year - 2014
Publication title -
revista de contabilidade e organizações
Language(s) - English
Resource type - Journals
ISSN - 1982-6486
DOI - 10.11606/rco.v8i20.55459
Subject(s) - univariate , earnings , econometrics , accounting , multivariate statistics , business , actuarial science , statistics , economics , mathematics
Using data from Thomson Reuters I/B/E/S, we investigated the statistical properties of analysts’ quarterly earnings projections in the years around the adoption of IFRS in Brazil (2007 to 2011). Characteristics such as accuracy, bias and precision of analysts’ forecasts are useful in different situations. The results indicate that the accuracy improved with increased coverage and for more profitable firms. Univariate and multivariate tests did not indicate significant changes in the accuracy and bias of the forecasts in the years around the adoption of IFRS.