Abstract
We examine whether financial analysts’ forecast accuracy differs between the pre- and post- adoption of Australian Equivalents to the International Financial Reporting Standards (AIFRS). We find that forecast accuracy has improved after Australia adopted AIFRS. As a secondary objective, this paper also investigates the role of financial analysts in reducing information asymmetry in today’s Australian capital market. We find weak evidence that more analysts following a stock do not help to improve forecast accuracy by bringing more firm-specific information to the market.
Keywords: Analysts’ forecasts, AIFRS, Forecast errors, Intangible assets
How to Cite:
Cheong, C. & Al Masum, M., (2010) “Financial Analysts' Forecast Accuracy : Before and After the Introduction of AIFRS”, Australasian Accounting, Business and Finance Journal 4(3), 65-81.
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