Factors affecting an analyst forecast revision— Taiwan and the United States: A comparison

The purpose of this study is to compare factors affecting analyst forecast revisions in Taiwan and the United States. Identical questionnaires were sent to practicing analysts in both countries to determine the type and source of information used in revising a forecast of earning per share for a firm. The findings indicate that Taiwanese analysts rely more on industry related data, government policy and secondary information sources and less on public and private disclosures by management than U.S. analysts. These results reflect socioeconomic factors and the stage of development of the financial analysis industry of Taiwan.