IDEAS home Printed from
   My bibliography  Save this article

La relation firme-analyste explique-t-elle les erreurs de prévision des analystes ?


  • Régis Breton
  • Sébastien Galanti
  • Christophe Hurlin
  • Anne-Gaël Vaubourg


We investigate whether the existence of a close relationship between a firm and an analyst increases or decreases the accuracy of the forecast produced by the analyst on the firm. Based on a sample of earnings per share forecasts for 208 French firms during the 1997–2007 period, we regress analyst forecast accuracy on its observable determinants. We then decompose the fixed effect of the regression and we utilize the firm-analyst pair effect as a measure of the intensity of the firm-analyst relationship. We find that a low (high) firm-analyst pair effect is associated with a low (high) forecast error, which suggests that close relationships between firms and analysts tend to reduce forecast accuracy. However, highly-experienced analysts and those who are specialized in large-capitalization firms are less subject to this bias. Classification JEL : D84, G11, G23, G24.

Suggested Citation

  • Régis Breton & Sébastien Galanti & Christophe Hurlin & Anne-Gaël Vaubourg, 2017. "La relation firme-analyste explique-t-elle les erreurs de prévision des analystes ?," Revue économique, Presses de Sciences-Po, vol. 68(6), pages 1033-1062.
  • Handle: RePEc:cai:recosp:reco_pr2_0103

    Download full text from publisher

    File URL:
    Download Restriction: free

    File URL:
    Download Restriction: free

    Other versions of this item:

    More about this item

    JEL classification:

    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage


    Access and download statistics


    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:cai:recosp:reco_pr2_0103. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jean-Baptiste de Vathaire). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.