The Relation between Annual Report Disclosures, Analysts? Earnings Forecasts and Analyst Following : Evidence from Singapore

This study examines the impact of annual report disclosures on analysts? forecasts for a sample of firms listed on the Stock Exchange of Singapore (SES). We examine the relation between the level of corporate disclosure and accuracy of analysts? earnings forecasts, dispersion in analysts? earnings forecasts, and the size of analyst following. The results reveal that the level of annual report disclosures is positively related to the accuracy of earnings forecasts by analysts, provided there is no big earnings surprise, and is also positively related to analyst following. We also find that the level of corporate disclosure is negatively related to dispersion in analysts? earnings forecasts provided there is no big earnings surprise. Thus, this study shows that more corporate disclosures by Singapore firms lead to more accuracy and less dispersion in the earnings forecasts among analysts. Furthermore, greater corporate disclosure can also lead to greater analyst interest in the firm