The Source of Optimism in Financial Analysts' Earnings Forecast:A Literature Review

The conclusion is that precision of analysts earnings forecast is enhanced by increasing in the numbers of analysts and by improving on earnings predictability and information disclosure.

The paper uses a series of error measure standards to compare the accuracy of earnings forecasts between companies of H share and Red Chips and local firms of Hong Kong Our findings show that the accuracy of firms of H share and Red Chips is more accurate than that of local companies of Hong Kong.

As in China s market there also has some earnings autocorrelation problsms with false estimated unexpected earnings, so the earnings momentum is coincident with USA market.

Collecting all listed companies of Shanghai stock market from 2001 to 2004 as the samples,this paper makes the positive analysis on the relationship between the unexpected earnings,audit report,the performance of the companies etc and the absolute timeliness and the relative timeliness of the annual financial reports.

With the annual announcements between 1997—2004 and the special background of China security market,we investigate the effects of audit opinions and unexpected earnings on the timeliness of annual announcements.

The related factors influencing management voluntary earning forecasts of listed companies involves several perspectives concerning the structure of board of directors,independence of audit committee,management incentive compensation,outside factors(earning forecasts from financial analysts respectively and CPA auditing).