The Shortcomings of Segment Reporting and their Impact on Analysts’ Earnings Forecasts
Type
conference paper
Date Issued
2018-05-30
Author(s)
Abstract (De)
In this paper we show that a part of the error in analyst forecasts can be traced back to reported segments, which do not report the full set of profitability components (assets, revenue or operating income). We also show that–against the common believe–disaggregation across business segments does not improve the ability of security analysts to forecast earnings. We attribute our findings to the design and quality of segment reporting under the “management approach” of both, ASC 280 (SFAS 131) and IFRS 8, which might direct the analysts focus. Our panel consists of a sample of 812 diversified US listed companies and covers the period 2009 to 2016.
Language
English
HSG Classification
contribution to scientific community
Event Title
EAA Annual Congress 2018
Event Location
Milan
Event Date
30.05.2018
Subject(s)
Contact Email Address
robert.gutsche@unisg.ch
Eprints ID
254402