Accuracy of management and security analysts' forecasts: Additional evidence

This paper provides further support for findings in studies by Basi, Carey, and Twark [2] and Ruland [5] which indicated no statistically significant superiority of management over analysts in forecasting earnings per share. These somewhat surprising findings are seen to flow from several possible sources. Lack of superior management forecasting performance may reflect (1) a considerable sharing of the forecast or forecast-related information by management with analysts, or (2) firm-specific data (to which management is more privy) may be less important in forecasting performance than data on economy-wide movements.