Analyst Earnings Forecasts in BRIC Countries

We examine time-series variations in the accuracy of earnings forecasts made by financial analysts in BRIC countries and factors that have traditionally been used to explain these variations. Our analysis shows that the analyst earnings forecast accuracy is high and has stayed relatively constant over our sample period (1994-2009). While the timeliness of the forecasts has also stayed relatively constant, the frequency of forecasts and the experience of the analysts making the forecast have shown improvement. Finally, while the number of companies covered by analysts and the extent of industry specialization has stayed relatively constant in the aggregate, there is greater convergence amongst the countries. These results challenge the conventional notion that some analyst-specific characteristics can influence an analyst's ability to make accurate forecasts. [PUBLICATION ABSTRACT]