Journal of Accounting and Management Information Systems (JAMIS)


THE USE OF ACCOUNTING INFORMATION BY FINANCIAL ANALYSTS IN EMERGENT MARKETS: THE CASE OF ROMANIA

Vol. 11, Nr. 2/2012 ,   p174..186

Author(s):  
Mihaela IONAŞCU
Ion IONAŞCU


Keywords:   valuation models, accounting information, financial analysts, forecast accuracy, IFRS adoption in Romania

Abstract:  

The purpose of this paper is to investigate theuse of accounting information by Romanian financial analysts with a focus onthe models used and the factors affecting their forecasts accuracy. Wehypothesize that on the emergent market of Romania, analysts rely more onsimple valuation models (such as price multiples) and that accounting variablesare perceived as less important compared to macroeconomic factors when it comesto forecast accuracy. To collect data we sent out questionnaires to theResearch Departments of the brokerage companies authorized to operate on the BucharestStock Exchange (BSE) (investment firms, financial investments banks, creditinstitutions). As IFRSs became mandatory for consolidated accounts of listedcompanies and as the National Securities and Exchange Committee (CNVM)envisions the application of IFRS in the individual accounts of thesecompanies, the paper also tries to capture the perception of Romanian financialanalysts on the role plaid by IFRS adoption in reducing forecasts errors.



Download:   http://online-cig.ase.ro/jcig/art/11_2_3.pdf

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