Corporate Governance Practices and Analysts Forecast Accuracy. Evidence for Romania

Author:Lecturer Mihaela IONAŞCU, Ph. D., Univ. Prof. Lavinia OLIMID, Ph. D.

JEL:G32, M41

DOI:

Keywords:corporate governance, analysts’ forecasts, information environment

Abstract:
In the last few years, several steps were taken in order to improve the quality of corporate governance for Romanian listed companies. Higher standards of corporate governance is documented in the literature to lead to a better information environment and, consequently, to increase analysts’ forecast accuracy. Accordingly, the purpose of this paper is to investigate the extent to which corporate governance policies affect analysts’ forecasts for companies listed on Bucharest Stock Exchange (BSE). The results showed that there is indeed a negative correlation between a corporate governance index – used as a proxy for the quality of corporate governance practices – and analysts’ forecast errors.\r\n\r\n

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