Expertise in forecasting performance of security analysts

John Jacob*, Thomas Z. Lys, Margaret A. Neale

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

374 Scopus citations


In this study of sell-side analysts' forecasts, we explore the effects of analyst aptitude, learning-by-doing, and the internal environment of the brokerage house on forecast accuracy. Our results indicate that analysts' aptitude and brokerage house characteristics are associated with forecast accuracy, while learning-by-doing is only associated with forecast accuracy when we do not control for analysts' company-specific aptitude in forecasting. It is unlikely that this result is caused by measurement errors because it is robust when we use a sub-sample where we can accurately measure experience.

Original languageEnglish (US)
Pages (from-to)51-82
Number of pages32
JournalJournal of Accounting and Economics
Issue number1
StatePublished - Nov 1999


  • Analysts' forecasts
  • G14
  • G24
  • G29
  • M41

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics


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