Economics, Econometrics and Finance
3 years ago

Data abundance hinders accuracy of long-term financial forecasts, study finds.

Swiss Finance Institute Research Paper Series
Does Big Data Improve Financial Forecasting? The Horizon Effect
Olivier Dessaint, Thierry Foucault, Laurent Frésard

Paper Summary

Big data can affect how accurate financial analysts' predictions are. When there is more data available for short-term forecasts, analysts make those predictions more accurate but may make long-term forecasts less accurate. This was shown in a study using a lot of forecasts and new ways to measure how much data analysts have. Too much data can make long-term financial forecasts less reliable.

Related papers

Economics, Econometrics and Finance
4 years ago

Short-term data availability leads to less accurate long-term financial forecasts.

Asset Pricing
Econophysics
Stock Market Predictions
Business, Management and Accounting
8 years ago

Financial analysts' forecasts outperform models in predicting market expectations.

Earnings Management
Asset Pricing
Value-based Management
Business, Management and Accounting
5 years ago

Management forecasts more valuable than ever during economic downturns.

Value-based Management
Macroeconomic Analysis
Insurance Dynamics