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Reporting errors in the I/B/E/S earnings forecast database: J. Doe vs. J. Doe

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  • Roger, Tristan

Abstract

This paper provides evidence of systematic errors in the way I/B/E/S reports analyst earnings forecasts. Analysis of the I/B/E/S earnings forecast database over the 1982–2014 period pinpointed a lack of consistency in the identification of financial analysts, a number of whom are consequently (1) identified by several different codes, and (2) erroneously attributed forecasts that were issued by namesakes. The present empirical investigation reveals that over 10% of the analyst codes in the database are subject to such reporting errors. These reporting errors impact the evaluation of analysts’ characteristics, and may bias empirical studies that rely on tracking analysts.

Suggested Citation

  • Roger, Tristan, 2017. "Reporting errors in the I/B/E/S earnings forecast database: J. Doe vs. J. Doe," Finance Research Letters, Elsevier, vol. 20(C), pages 170-176.
    • Handle: RePEc:eee:finlet:v:20:y:2017:i:c:p:170-176
    DOI: 10.1016/j.frl.2016.09.026
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    References listed on IDEAS

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    Cited by:

    1. Huai-Chun Lo & Chia-Ying Chan, 2023. "Mean reverting in stock ratings distribution," Review of Quantitative Finance and Accounting, Springer, vol. 60(3), pages 1065-1097, April.

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    More about this item

    Keywords

    Financial analysts; Earnings forecasts; I/B/E/S database; Reporting errors; Namesakes;
    All these keywords.

    JEL classification:

    • C8 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs
    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications
    • G00 - Financial Economics - - General - - - General
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage

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