scholarly journals The Impact of Big Data on Firm Performance: An Empirical Investigation

2019 ◽  
Vol 109 ◽  
pp. 33-37 ◽  
Author(s):  
Patrick Bajari ◽  
Victor Chernozhukov ◽  
Ali Hortaçsu ◽  
Junichi Suzuki
Keyword(s):  
Big Data ◽  
Firm Performance ◽  
Empirical Investigation ◽  
Forecast Accuracy ◽  
Forecast Errors ◽  
Retail Sales ◽  
Sales Data ◽  
Empirical Results ◽  
Time Periods ◽  
The Impact

We examine the impact of “big data” on firm performance in the context of forecast accuracy using proprietary retail sales data obtained from Amazon. We measure the accuracy of forecasts in two relevant dimensions: the number of products (N), and the number of time periods for which a product is available for sale (T). Theory suggests diminishing returns to larger N and T, with relative forecast errors diminishing at rate 1/sqrt(N)+1/sqrt(T). Empirical results indicate gains in forecast improvement in the T dimension but essentially flat N effects.

scholarly journals The Impact of Big Data on Firm Performance: An Empirical Investigation

2018 ◽  
Author(s):  
Patrick Bajari ◽  
Victor Chernozhukov ◽  
Ali Hortaçsu ◽  
Junichi Suzuki
Keyword(s):  
Big Data ◽  
Firm Performance ◽  
Empirical Investigation ◽  
The Impact

Initial Evidence on the Impact of Big Data Implementation on Firm Performance

2018 ◽  
Vol 22 (2) ◽  
pp. 475-487 ◽  
Author(s):  
Cheng-Kui Huang ◽  
Tawei Wang ◽  
Tzu-Yen Huang
Keyword(s):  
Big Data ◽  
Firm Performance ◽  
The Impact

Absolute Forecast Errors of Earnings in Malaysian IPO Prospectuses: The Impact of Ethnic Diversity

2014 ◽  
Vol 68 (3) ◽  
Author(s):  
Mohammed Abdullah Ammer ◽  
Nurwati A. Ahmad-Zaluki
Keyword(s):  
Ethnic Diversity ◽  
Boards Of Directors ◽  
Forecast Error ◽  
Forecast Accuracy ◽  
Earnings Forecasts ◽  
Ordinary Least Squares ◽  
Audit Committees ◽  
Earnings Forecast ◽  
Forecast Errors ◽  
The Impact

The main focus of this paper is the earnings forecast, a vital information included in IPO prospectus. Specifically, our paper examined the impact of ethnic diversity groups on the boards of directors and audit committees in terms of earnings forecast accuracy. We are motivated by the lack of prior studies related to investigating IPO earnings forecast. Cross-sectional Ordinary Least Squares (OLS) modeling was conducted on 190 Malaysian IPOs from 2002 to 2012. For the evaluation of earnings forecast accuracy, we mathematically used the metric of Absolute Forecast Error (AFER). Moreover, for the test of robustness, we used the metric of Squared Forecast Error (SQFER) as error measurement, as it mostly deals with large errors. The empirical results indicate that the ethnic diversity groups on boards and audit committees have an impact on the accuracy of earnings forecasts. However, the evidence is significant for Chinese and Malay serving on boards but insignificant in terms of Chinese and Malay serving on audit committee. The findings indicate that multi-ethnic groups in Malaysian IPO companies could hinder the capability of IPO companies to achieve accurate earnings forecasts in their prospectuses.

Management Forecast Accuracy and CEO Turnover

2012 ◽  
Vol 87 (6) ◽  
pp. 2095-2122 ◽  
Author(s):  
Sam (Sunghan) Lee ◽  
Steven R. Matsunaga ◽  
Chul W. Park
Keyword(s):  
Firm Performance ◽  
Boards Of Directors ◽  
Forecast Accuracy ◽  
Ceo Turnover ◽  
Forecast Errors ◽  
Positive Relation ◽  
Managerial Ability ◽  
Management Forecast ◽  
Future Events ◽  
The Absolute

ABSTRACT We investigate whether management forecast accuracy provides a signal regarding CEOs' ability to anticipate and respond to future events by examining the relation between management forecast errors and CEO turnover. We find that the probability of CEO turnover is positively related to the magnitude of absolute forecast errors when firm performance is poor and that this positive relation holds for both positive and negative forecast errors. In addition, we find that the positive relation between CEO turnover and the absolute forecast errors is concentrated in the sample of less entrenched CEOs. Our findings indicate that boards of directors use management forecast accuracy as a signal of CEOs' managerial ability and that managers bear a cost for issuing inaccurate forecasts.

Audit quality and attributes of management earnings forecasts

2017 ◽  
Vol 16 (4) ◽  
pp. 406-423 ◽  
Author(s):  
Yu-Ho Chi ◽  
David A. Ziebart
Keyword(s):  
Corporate Governance ◽  
Audit Quality ◽  
Forecast Accuracy ◽  
Academic Community ◽  
Forecast Errors ◽  
Management Earnings Forecasts ◽  
Control Variables ◽  
Content Type ◽  
Time Period ◽  
The Impact

Purpose The purpose of this study is to examine the impact of auditor type on management’s choice of forecast precision and management forecast errors, including the effects of corporate governance. The authors use a different sample and a larger period of years to determine whether prior inferences are robust across these dimensions as well as various corporate governance and other control variables. Design/methodology/approach This quasi-experimental study uses archival data in regression-based analyses. Findings The authors find firms with Big 5 auditors issue forecasts that have larger forecast errors are biased downward and are less precise. The inferences of this study are robust to the inclusion of corporate governance variables, along with an extensive number of control variables found important in prior studies. Research limitations/implications While the sample and time period may be limited, the authors have no evidence this biases the results. Practical implications More stringent auditing may have an unintended consequence of reducing the informativeness of management forecasts, as managers act strategically in regards to forecast accuracy, bias and precision. Social implications The inferences of this study indicate that while higher quality audits could constrain earnings management, higher quality audits may induce management to provide forecasts that have greater errors, may be biased and may be less informative. Originality/value The results and inferences of this study suggest that the inferences in prior studies hold across a different sample and a different time period. This is important given concerns in the academic community regarding the extent to which prior studies can be replicated.

Information or Institution?

2011 ◽  
Vol 231 (1) ◽  
Author(s):  
Roland Döhrn ◽  
Christoph M. Schmidt
Keyword(s):  
Personal Experience ◽  
Forecast Accuracy ◽  
Forecast Errors ◽  
Forecast Horizon ◽  
Good Investment ◽  
New Information ◽  
German Research ◽  
Macroeconomic Forecast ◽  
The Individual ◽  
The Impact

SummaryThe accuracy of macroeconomic forecast depends on various factors, most importantly the mix of analytical methods used by the individual forecasters, the way that their personal experience is shaping their identification strategies, but also their efficiency in translating new information into revised forecasts. In this paper we use a broad sample of forecasts of German GDP and its components to analyze the impact of institutions and information on forecast accuracy. We find that forecast errors are a linear function of the forecast horizon, which serves as an indicator of the information available at the time a forecast is produced. This result is robust over a variety of different specifications. As better information seems to be the key to achieving better forecasts, approaches for acquiring reliable information early seem to be a good investment. By contrast, the institutional factors tend to be small and statistically insignificant. It has to remain open, whether this is the consequence of the efficiency-enhancing competition among German research institutions or rather the reflection of an abundance of forecast suppliers.

scholarly journals The Impact of Integrated Reporting on Analysts’ Forecasts

2019 ◽  
Vol 12 (1) ◽  
pp. 76 ◽  
Author(s):  
Romy Bakker ◽  
Georgios Georgakopoulos ◽  
Virginia - Athanasia Sotiropoulou ◽  
Kanellos S. Tountas
Keyword(s):  
Positive Impact ◽  
Forecast Accuracy ◽  
Analyst Forecast ◽  
Forecast Errors ◽  
Integrated Reporting ◽  
Big 4 ◽  
Audit Firms ◽  
Sustainability Disclosure ◽  
The Impact ◽  
The Relationship

Shareholders are very interested in the relationship between Integrated Reporting and analyst forecast accuracy. Integrated Reporting is deemed to reduce information asymmetry between the company and shareholders. The purpose of this paper is to provide evidence on the relationship between Integrated Reporting and analyst forecast accuracy. Analyst forecast accuracy is examined for a global sample of companies that adopted Integrated Reporting, companies that get assurance on Integrated Reporting, companies that receive assurance on their integrated reports by one of the Big 4, and for a south african sample, companies that are mandated to use Integrated Reporting. Information for analysts’ forecasts is retrieved from the I/B/E/S database and information for Integrated Reporting is retrieved from the GRI Sustainability Disclosure Database. We do not find a significant impact of Integrated Reporting on analyst forecast errors. Similarly, attestation of the reports by bigger or smaller audit firms does not seem to affect analysts’ forecast accuracy. In South Africa however, a positive impact on analysts’ forecast accuracy is observed suggesting that the effect of mandatory integrated disclosures is important for analysts’ forecasts.

scholarly journals Bank influence, firm performance and survival: Empirical evidence from Germany 1970-1986

2003 ◽  
Vol 1 (2) ◽  
pp. 65-70 ◽  
Author(s):  
Julie Ann Elston
Keyword(s):  
Firm Performance ◽  
Empirical Evidence ◽  
Firm Size ◽  
Firm Growth ◽  
Survival Rates ◽  
Agency Problems ◽  
Empirical Results ◽  
Concentrated Ownership ◽  
Governance Systems ◽  
The Impact

This paper systematically investigates the impact of bank-influence on firm performance and survival in Germany. Close bank-firm relationships and concentrated ownership which characterize the Japanese and German financial and governance systems are often credited with reducing agency problems and improving monitoring of firm activities, thus improving firm performance and the chances of survival. Empirical results reveal that bank influenced firms have higher survival rates than independent firms. However, firm growth appears to be independent of bank influence and negatively related to firm size.

scholarly journals COMPLIANCE WITH IFRS REQUIRED DISCLOSURE AND ANALYSTS’ FORECAST ERRORS: EVIDENCE FROM BRAZIL

2018 ◽  
Vol 29 (1) ◽  
pp. 77-100 ◽  
Author(s):  
Edilene Santana Santos ◽  
Flávia Almeida Morato da Silva ◽  
Hsia Hua Sheng ◽  
Mayra Ivanoff Lora
Keyword(s):  
Financial Reporting ◽  
Negative Relationship ◽  
Forecast Accuracy ◽  
Economic Benefits ◽  
Earnings Forecast ◽  
Forecast Errors ◽  
Ifrs Adoption ◽  
Compliance Level ◽  
Before And After ◽  
The Impact

We analyze the relationship between analysts' earnings forecast errors and Brazilian listed firms’ compliance with International Financial Reporting Standards (IFRS) required disclosure. Through analysis of a panel data, we examine whether the variance in the Brazilian firms’ disclosure compliance levels in the Notes to Financial Statements for 2010 and 2012 affects analysts’ earnings forecast errors for 2011 and 2013, respectively, finding a significant negative relationship between these variables. By performing a compliance level analysis per firm, our study considers whether and to what extent firms effectively disclose as required by IFRS (as “IFRS serious adopters”), distinguishing them from firms that mere formally adopt IFRS (as “IFRS label adopters”), without effectively complying with it. Following other studies, we use four alternative models to measure the disclosure compliance level per firm, and we do not find significant improvement in the firms’ disclosure levels from 2010 to 2012, except if we use the most tolerant model.  By this approach, our research contributes to clarify the impact of IFRS adoption on analysts’ forecast accuracy, as other studies that use only binary variables (analysts’ forecasts before and after IFRS adoption) have found contradictory results. Our findings confirm other studies on the international accounting convergence in other countries, emphasizing that compliance is at least as important as the simply formal IFRS adoption. This corroborates the relevance of enforcement mechanisms to induce firms to better comply with IFRS, thus to better attain the economic benefits expected from its adoption.

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