Some empirical evidence on the reliability of forecasted profits in Singapore

Abstract

The purpose of this study is to provide an insight into the reliability of Chairman's

Statement with respect to actual profits realised. The rationale for conducting this study centres on the issue that the Chairman's Statement is a voluntary, qualitative disclosure, yet many investors rely on it for future-oriented information in decision making (Lee and Tweedie, 1975). Hence, it is necessary to evaluate the accuracy and reliability of such forecasts.