TY - JOUR
TI - Voluntary disclosure and quality of new stock companies’ earnings forecast in EU-regulated markets
AU - Sosnowski, Tomasz
AU - Wawryszuk-Misztal, Anna
TI - Voluntary disclosure and quality of new stock companies’ earnings forecast in EU-regulated markets
AB - 
	Companies conducting IPO in European countries make a voluntary decision regarding the disclosure of earnings forecast in prospectus. Using a sample of 651 companies that conducted IPO on EU-regulated markets between 2010 and 2016, we investigate the popularity of decisions on revealing financial forecasts in prospectus and address the questions regarding the type and accuracy of such forecasts. We find that only 12.58% of companies voluntarily included their financial forecasts in the IPO prospectus, and the scope of the disclosed information is diversified. Most commonly prospectuses include projections of sales revenues, net profits, and EBITDA. Our results give evidence that financial projections are over-optimistic and not accurate.
VL - 2018
IS - Volume 37
PY - 2018
SN - 2300-6102
C1 - 2353-9496
SP - 348
EP - 359
DO - 10.4467/23539496IB.18.025.9398
UR - https://ejournals.eu/en/journal/ibage/article/voluntary-disclosure-and-quality-of-new-stock-companies-earnings-forecast-in-eu-regulated-markets
KW - financial forecasts accuracy
KW - earnings forecast error
KW - initial public offering
KW - prospectus