TY - JOUR
T1 - How certain firm-specific characteristics affect the accuracy and dispersion of analysts' forecasts. A latent variables approach
AU - Parkash, Mohinder
AU - Dhaliwal, Dan S.
AU - Salatka, William K.
PY - 1995/11
Y1 - 1995/11
N2 - We suggest that analysts' uncertainty in predicting earnings is a function of: (1) the uncertainty due to production, investment, and financing (PIF) activities, and (2) the amount of information available about the firm. We use a latent variable approach to explore this framework. Observed indicator variables are used to represent the underlying unobserved attributes. The results show that analysts' uncertainty is a positive function of business risk, financial risk, and ownership concentration, and is negatively related to the amount of information.
AB - We suggest that analysts' uncertainty in predicting earnings is a function of: (1) the uncertainty due to production, investment, and financing (PIF) activities, and (2) the amount of information available about the firm. We use a latent variable approach to explore this framework. Observed indicator variables are used to represent the underlying unobserved attributes. The results show that analysts' uncertainty is a positive function of business risk, financial risk, and ownership concentration, and is negatively related to the amount of information.
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U2 - 10.1016/0148-2963(94)00076-Q
DO - 10.1016/0148-2963(94)00076-Q
M3 - Article
AN - SCOPUS:27844559928
SN - 0148-2963
VL - 34
SP - 161
EP - 169
JO - Journal of Business Research
JF - Journal of Business Research
IS - 3
ER -