Abstract ABSTRACT: This paper compares management forecast accuracy with that of analysts' forecasts published in the Value Line investment Service. Results suggest that management forecasts published on a voluntary basis are likely to be comparatively more accurate, especially when management forecasts are published after analysts' forecasts. On an industry basis, management forecasts for chemicals and services (transportation, recreation, etc.) exhibit better performance. For utilities and banks, however, no difference in the accuracy of the two forecasts is found. No trend was detected with regard to the impact of firm size on the comparative accuracy of management forecasts.
Bikki Jaggi (Tue,) studied this question.