Ismail, N. and Weetman, P. (2007) Forecast accuracy in initial public offerings and the impact of external constraints relative to managerial choice: a research note. Accounting and Finance, 47(3), pp. 513-525. (doi: 10.1111/j.1467-629X.2007.00217.x)
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Abstract
We examine the accuracy of earnings forecasts published in prospectuses, under conditions where external influences of state regulation and economic condition act as constraints to mitigate management optimism. Our results indicate that regulation has no significant impact, but economic condition and management optimism are significantly associated with forecast accuracy. We conclude that a study of forecast accuracy over time must take into account external influences and that attempting to use regulation to improve forecast accuracy is not an effective strategy when there are strongly adverse economic conditions and when promoters or managers are optimistic in forecasting.
Item Type: | Articles |
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Status: | Published |
Refereed: | Yes |
Glasgow Author(s) Enlighten ID: | Weetman, Professor Pauline |
Authors: | Ismail, N., and Weetman, P. |
College/School: | College of Social Sciences > Adam Smith Business School > Accounting and Finance |
Journal Name: | Accounting and Finance |
Publisher: | Wiley |
ISSN: | 0810-5391 |
ISSN (Online): | 1467-629X |
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