• ISSN: 2301-3567 (Print), 2972-3981 (Online)
    • Abbreviated Title: J. Econ. Bus. Manag.
    • Frequency: Quarterly
    • DOI: 10.18178/JOEBM
    • Editor-in-Chief: Prof. Eunjin Hwang
    • Executive Editor: Ms. Fiona Chu
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HOME > Archive > 2015 > Volume 3 Number 2 (Feb. 2015) >
JOEBM 2015 Vol.3(2): 233-238 ISSN: 2301-3567
DOI: 10.7763/JOEBM.2015.V3.186

Ownership Structure and Earnings Forecast Accuracy: Evidence from Malaysian IPOs

Noor Ayuernie Ibrahim and Norashikin Ismail

Abstract—This study investigates the association of different types of ownership structure and the forecast accuracy in the context of mandatory earnings forecasts disclosure requirement. The analysis was tested on a sample of 185 IPO prospectuses published from January 2001 to 30th April 2008. With the mean forecast errors of -6.30 percent and absolute forecast error (AFE) of 22.11 percent, the result indicates that on average, Malaysian IPO companies issue optimistic and less accurate earnings forecast. Using ordinary least square (OLS) regression, this study suggests that the institutional and active-family ownership are positively associated with forecast accuracy, while management ownership is negatively associated with forecast accuracy.

Index Terms—Forecast accuracy, forecast errors, ownership structure, and initial public offerings.

The authors are with the Faculty of Accountancy, Universiti Teknologi MARA, Malaysia (e-mail: noor_ayuernie@yahoo.com, shikin673@salam.uitm.edu.my).

[PDF]

Cite: Noor Ayuernie Ibrahim and Norashikin Ismail, "Ownership Structure and Earnings Forecast Accuracy: Evidence from Malaysian IPOs," Journal of Economics, Business and Management vol. 3, no. 2, pp. 233-238, 2015.

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