Segmental reporting, accounting enforcement, and analyst forecast dispersion in the European Union

Author First name, Last name, Institution

Ahmed Aboud, Zayed UniversityFollow

Document Type

Article

Source of Publication

Journal of International Accounting, Auditing and Taxation

Publication Date

12-1-2023

Abstract

This paper investigates the relationship between segmental reporting and analyst forecast dispersion in the largest European Union firms. It also addresses how the adoption of International Financial Reporting Standard 8 (IFRS8) and the strength of country-level enforcement affect this relationship. I find a positive relationship between segmental reporting and analyst forecast dispersion. However, the results of sub-sample analyses reveal a negative relationship between segmental reporting and analyst forecast dispersion in countries with strong enforcement systems. Furthermore, this paper documents that the positive relationship between segmental reporting and analyst forecast dispersion is pronounced only in the Pre-IFRS8 period. These findings suggest that country-level enforcement compensates for lower segmental reporting quality, and the adoption of IFRS8 improves the quality of segmental reporting.

DOI Link

10.1016/j.intaccaudtax.2023.100583

ISSN

1061-9518

Publisher

Elsevier BV

Volume

53

Disciplines

Business

Keywords

Analyst forecast dispersion, Enforcement, Europe, IFRS8, Segmental reporting

Scopus ID

85174736960

Recommended Citation

Aboud, Ahmed, "Segmental reporting, accounting enforcement, and analyst forecast dispersion in the European Union" (2023). All Works. 6124.
https://zuscholars.zu.ac.ae/works/6124

Indexed in Scopus

yes

Open Access

no