—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, forecast errors, ownership
structure, and initial public offerings.
The authors are with the Faculty of Accountancy, Universiti Teknologi
MARA, Malaysia (e-mail: email@example.com,
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.