Archival Data of Financial Analysts’ Earnings Forecasts in the Euro Zone: Problems With Euro Conversions

Research in International Business and Finance, 38, 466-473, 2016

18 Pages Posted: 6 Mar 2018

Date Written: July 8, 2016

Abstract

In multi-country studies, researchers frequently extract data in a single currency rather than in native currencies. This approach can be misleading for financial analysts’ forecasts in the euro zone when researchers are using the IBES database. We suspect that forecasts of earnings before the birth of the euro on January 1,1999 are kept in national currencies, although they are supposed to be displayed in euros, which can severely distort results concerning earnings forecast accuracy. We propose a simple procedure for checking for the existence of this error, as well as a quick solution to overcome it.

Keywords: Financial Analysts, IBES, Earnings Forecasts, Euro

JEL Classification: C18, C55, C81, G14, G24

Suggested Citation

Galanti, Sébastien, Archival Data of Financial Analysts’ Earnings Forecasts in the Euro Zone: Problems With Euro Conversions (July 8, 2016). Research in International Business and Finance, 38, 466-473, 2016, Available at SSRN: https://ssrn.com/abstract=3135187

Sébastien Galanti (Contact Author)

University of Orleans ( email )

Université d'Orléans,
Rue de Blois, B.P. 6739, 45
France

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
22
Abstract Views
332
PlumX Metrics