A study of the reliability and its influencing factors of financial analyst´s forecast

The reliability of earnings forecasts could help investors make decisions. There are many factors which could affect the reliability of earnings forecasts. In this study, we test the of factors influence the reliability via regression model. The regression model shows that the forecasting error is related to the factors of motivation of earnings management, the foreseeable of earnings, the amount of agencies and auditing agencies; and the forecasting error is unrelated to the factors of earnings fluctuation and company size. The reliability of average which is affected by many influencing factor is distinct. The reliability would rise along with the development of the analyst profession.