IDEAS home Printed from https://ideas.repec.org/p/sek/iacpro/3606040.html
   My bibliography  Save this paper

Are the New Rules of Segment Reporting, SFAS 131, Useful for Analysts?

Author

Listed:
  • Itzhak Venezia

    (Tel Aviv Yaffo Academic College)

  • Sasson Bar Yosef

    (Bocconi University)

Abstract

This paper analyzes whether the new segment reporting rules, SFAS 131, improve analysts? likelihood to accurately forecast future financial results of firms. We conduct an experimental analysis where subjects are given the task to predict future values of key financial variables of several corporations, and we compare the accuracy of the predictions based on the old rules vs. the new ones. Most of the forecasts based on the new rules were not significantly different or significantly more precise than those based on the former ones. Also, only a small percentage of the subjects found the new segment reports central in their analysis. It appears that the new rules, whereas noticeable by the subjects, did not help them achieve more accurate forecasts.

Suggested Citation

  • Itzhak Venezia & Sasson Bar Yosef, 2016. "Are the New Rules of Segment Reporting, SFAS 131, Useful for Analysts?," Proceedings of International Academic Conferences 3606040, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iacpro:3606040
    as

    Download full text from publisher

    File URL: https://iises.net/proceedings/23rd-international-academic-conference-venice/table-of-content/detail?cid=36&iid=093&rid=6040
    File Function: First version, 2016
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Behavioral Finance; Experimental Economics; Analysts? Predictions; Segment reporting; Financial Statements;
    All these keywords.

    JEL classification:

    • G00 - Financial Economics - - General - - - General
    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sek:iacpro:3606040. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Klara Cermakova (email available below). General contact details of provider: https://iises.net/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.