Big4 Auditors and the Accuracy of Analyst Earnings Forecast

The relevance of the issue is predetermined by the lack of clearer understanding of the factors affecting the accuracy of analyst earning forecast in terms of the Russian companies hiring Big4 and non-Big4 auditors. The object of the research is the accuracy of analyst earning forecast. The subject of the research is Big4 auditors and the accuracy of analyst earning forecast. The purpose of this study is to analyse the factors affecting the accuracy of analyst earning forecast in terms of the Russian companies hiring Big4 and non-Big4 auditors. The tasks of the research are: • to make theoretical analysis to the study of audit quality and analyst forecast accuracy; • to study properties of analyst earnings forecasts; • to identify the factors affecting the accuracy of analysts’ forecasts; • to analyse the accuracy of analyst earning forecast with regard to the Russian companies hiring Big4 and non-Big4 auditors; • to discuss research findings. The theoretical aim implies that it can be used by young students who want to analyse the audit quality and the issues related to the accuracy of analyst earnings forecasts. The practical significance of the research lies in the fact that its results can be used in lectures and seminars of analytics, finance and economics, developing curricula and textbooks of these subjects, as well as while writing course papers and diploma. The novelty of the paper lies in the use of acquired knowledge in the field of economics and analytics in order to analyse the factors affecting the accuracy of analyst earning forecast in terms of the Russian companies hiring Big4 and non-Big4 auditors. Proper use of this knowledge will help in analytics and economic matters dealing with a firm’s performance both in the Russian and in the world market. The scope of the paper. The thesis comprises introduction, four chapters, conclusion and references. Introduction includes general information on the topic and provides some general information on the research object and subject. Chapter 1 represents the theoretical part of the paper and deals with literature review, while Chapter 2 describes data and research design. The first part of Chapter 2 describes research methodology, while the second part of Chapter 2 is dedicated to the presentation of the research sample. Chapter 3 shows empirical research findings and leads to the conclusion which sum-ups the main idea of the work and addresses the research hypotheses. The results of research will serve as useful material for professors and students studying audit quality and analyst forecast accuracy. References contain the main literature dealing with the research purpose and tasks studied while writing the thesis.