The impact of segment definition on the accuracy of analysts' earnings forecasts

Accounting and Business Research

Volumn 27, Issue 2, 1997, Pages 145-156

  Hussain, Simon ^a  

^a NEWCASTLE UNIVERSITY   (United Kingdom)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 34547909170     PISSN: 00014788     EISSN: None     Source Type: Journal    
DOI: 10.1080/00014788.1997.9729540     Document Type: Article

References (51)

1. Accounting Standards Committee (1990). Statement of Standard Accounting Practice 25, Segmental Reporting. London: ASC, ICAEW, June.
2. Ali, A., Klein, A. and Rosenfeld, J. (1992). 'Analysts' use of information about premenant and transitory earnings components in forecasted EPS'. Accounting Review, 67: 183-98.
3. Arnold, J. and Moizer, P. (1984). 'A survey of the methods used by UK investment analysts to appraise investments in ordinary shares'. Accounting and Business Research, Summer: 195-207.
4. Atiase, R. K. (1985). 'Predisclosure information, firm capitalisation and security price behaviour around earnings announcements'. Journal of Accounting Research. Spring: 21-36.
5. Backer, M. and McFarland, W. (1968). External Reporting for Segments of a Business. New York: National Association of Accountants.
6. Balakrishnan, R., Harris, T. S. and Sen, P. K. (1990). 'The predictive ability of geographic segment disclosures'. Journal of Accounting Research, 28(2): 305-25.
7. Baldwin, B. A. (1984). 'Segment earnings disclosure and the ability of security analysts to forecast earnings per share'. Accounting Review, LIX(3): 376-88.
8. Bamber, L. S. (1986). 'The information content of annual earnings releases: a trading volume approach'. Journal of Accounting Research, Spring: 40-56.
9. Barefield, R. M. and Comiskey, E. E. (1975a). 'Segmental financial disclosure by diversified firms and security prices: a comment'. Accounting Review, 50 (October): 818-21.
10. Barefield, R. M. and Comiskey, E. E. (1975b). 'The association of forecast error with other risk measures'. Journal of Business Finance and Accounting, 2(3): 315-25.
11. Basi, B. A., Carey, K. J. and Twark, R. D. (1976). 'A comparison of the accuracy of corporate and security analyst forecasts of earnings'. Accounting Review, April: 244-54.
12. Bhaskar, K. N. and Morris, R. C. (1984). 'The accuracy of brokers' profit forecasts in the UK'. Accounting and Business Research, Spring: 113-24.
13. Bhushan, R. (1989a). 'Collection of information about publicly traded firms'. Journal of Accounting and Economics, 11: 183-206.
14. Bhushan, R. (1989b). 'Firm characteristics and analyst following'. Journal of Accounting and Economics, 11: 255-74.
15. Breusch, T. S. and Pagan, A. R. (1979). 'A simple test for heteroscedasticity and random coefficient variation'. Econometrica, 47: 1,287-94.
16. Brown, L. D., Griffin, P., Hagerman, R. and Zmijewski, M. (1987). 'An evaluation of the alternative proxies for the market's assessment of unexpected earnings'. Journal of Accounting and Economics, 9 (July): 159-93.
17. Brown, L. D., Richardson, G. D. and Schwager, S. J. (1987). 'An information interpretation of financial analyst superiority in forecasting earnings'. Journal of Accounting Research, Spring: 49-67.
18. Brown, L. D. and Rozeff, M. S. (1978). "The superiority of analyst forecasts as measures of expectations of evidence from earnings'. Journal of Finance, March: 1-16.
19. Central Statistical Office (1981). Standard Industrial Classification: Revised 1980. London: HMSO.
20. Collins, D. W. (1976). 'Predicting earnings with sub-entity data: some further research'. Journal of Accounting Research, Spring: 163-77.
21. Collins, D. W., Kothari, S. P. and Rayburn, J. D. (1987). 'Firm size and the information content of prices with respect to earnings'. Journal of Accounting and Economics, 9 (July): 111-38.
22. Collins, W. A. and Hopwood, W. S. (1980). 'A multivariate analysis of annual earnings forecasts generated from quarterly forecasts of financial analysts and univariate time-series models'. Journal of Accounting Research, Autumn: 340-406.
23. Cooper, T. (1984). 'Stockbrokers' earnings forecasts: a resume'. Investment Analyst, July: 1-26.
24. Cooper, T. and Taylor, B. (1983). 'How good are stockbrokers' earnings forecasts?'. Investment Analyst, January: 14-23.
25. Day, J. F. S. (1986). 'The use of annual reports by UK investment analysts'. Accounting and Business Research, Autumn: 295-307.
26. Edwards, P. (1995). 'Segmental reporting: a preparers' perspective'. Accounting and Business Research, Summer: 151-161.
27. Emmanuel, C. R. and Garrod, N. W. (1987). 'On the segment identification issue'. Accounting and Business Research, 17(67): 235-40.
28. Emmanuel, C. R., Garrod, N. W. and Frost, C. (1989). 'An experimental test of analysts' forecasting behaviour'. British Accounting Review, 21: 119-26.
29. Emmanuel, C. R. and Gray, S. J. (1977). 'Segmental disclosures and the segment identification problem'. Accounting and Business Research, Winter: 37-50.
30. Emmanuel, C. R. and Gray, S. J. (1978). 'Segmental disclosures by multibusiness multinational companies: a proposal'. Accounting and Business Research, Summer: 169-77.
31. Emmanuel, C. R. and Pick, R. H. (1980). "The predictive ability of UK segment reports'. Journal of Business Finance and Accounting, 7(2): 201-18.
32. Financial Accounting Standards Board (1976). Statement of Financial Accounting Standard No. 14, Financial Reporting for Segments of a Business Enterprise. Connecticut: FASB.
33. Freeman, R. N. (1987). 'The association between accounting earnings and security returns for large and small firms'. Journal of Accounting and Economics, 9 (July): 195-228.
34. Fried, D. and Givoly, D. (1982). 'Financial analysts' forecasts of earnings: a better surrogate for earnings expectations'. Journal of Accounting and Economics, October: 85-107.
35. Hussain, S. (1996) 'Segmental definitions' in Skerratt, L. C. L. and Tonkin, D. J. (eds.). Financial Reporting 1995-96. ICAEW, pp.23-44.
36. Hussain, S. and Skerratt, L. C. L. (1992). 'Gains from disaggregation and the definition of a segment: a note on SSAP 25'. Accounting and Business Research, Autumn: 370-76.
37. Key British Enterprises. London: Dun & Bradstreet International.
38. Kinney, W. R. Jr (1971). 'Predicting earnings: entity versus sub-entity data'. Journal of Accounting Research, Spring: 127-36.
39. Kochanek, R. F. (1974). 'Segmental financial disclosure by diversified firms and security prices'. Accounting Review, April: 245-58.
40. Lorek, K. S. (1979). 'Predicting annual net earnings with quarterly time-series models'. Journal of Accounting Research, Spring: 190-204.
41. Mautz, R. K. (1968). Financial Reporting by Diversified Companies. New York: Financial Executives Research Foundation.
42. O'Brien, P. C. (1988). 'Analysts' forecasts as earnings expectations'. Journal of Accounting and Economics, 10: 53-88.
43. O'Hanlon, J. and Whiddett, R. (1991). 'Do UK security analysts overreact?' Accounting and Business Research, Autumn: 63-74.
44. Patz, D. H. (1989). 'UK analysts' earnings forecasts'. Accounting and Business Research, Summer: 267-75.
45. Pindyck, R. S. and Rubinfeld, D. L. (1991). Econometrica Models and Economic Forecasts (3rd ed.). McGraw-Hill, Inc.
46. Rennie, E. D. and Emmanuel, C. R. (1992). 'Segmental disclosure practice: thirteen years on'. Accounting and Business Research, Spring: 151-59.
47. Roberts, C. (1989). 'Forecasting earnings using geographic segment data: some UK evidence'. Journal of International Financial Management and Accounting, Summer: 130-51.
48. Securities and Exchange Commission (1970). Securities Act of 1934, Release No. 9000. Chicago: Commerce Clearing House.
49. Solomons, D. (1968). 'Accounting problems and some proposed solutions', in Rappaport, A., Firmin, P. A. and Zeff, S. A. (eds.), Public Reporting by Conglomerates. Prentice-Hall.
50. Swaminathan, S. (1991). 'The impact of SEC mandated segment data on price variability and divergence of beliefs'. Accounting Review, 66(1): 23-41.
51. White, H. (1980). 'A heteroscedastic-consistent covariance matrix estimator and a direct test for heteroscedasticity'. Econometrica, May: 817-828.