• Journal of Distribution Science
• /
• v.20 no.12
• /
• pp.117-123
• /
• 2022

Purpose: This study investigates the relationship between earnings forecasts estimated from a cross-sectional earnings forecast model and firm characteristics such as firm size, sales volatility, and earnings volatility. Research design, data and methodology: The association between earnings forecasts and the aforementioned firm characteristics is examined using 214 firm-year observations with analyst following and 848 firm-year observations without analyst following for the period of 2011-2019. I estimate future earnings using a cross-sectional earnings forecast model, and then compare these model-based earnings forecasts with analysts' earnings forecasts in terms of forecast bias and forecast accuracy. The earnings forecast bias and accuracy are regressed on firm size, sales volatility, and earnings volatility. Results: For a sample with analyst following, I find that the model-based earnings forecasts are more accurate as the firm size is larger, whereas the analysts' earnings forecasts are less biased and more accurate as the firm size is larger. However, for a sample without analyst following, I find that the model-based earnings forecasts are more pessimistic and less accurate as firms' past earnings are more volatile. Conclusions: Although model-based earnings forecasts are useful for evaluating firms without analyst following, their accuracy depends on the firms' earnings volatility.

• Journal of Korea Water Resources Association
• /
• v.50 no.8
• /
• pp.551-562
• /
• 2017

In order to utilize 6-month precipitation forecasts (6 months at maximum) of Global Seasonal Forecast System version 5 (GloSea5), which is being provided by KMA (Korea Meteorological Administration) since 2014, for water resources management as well as other applications, it is needed to correct the forecast model's quantitative bias against observations. This study evaluated applicability of bias-correction skill in GloSea5 and selected an optimal method among 11 techniques that include probabilistic distribution type based, parametric, and non-parametric bias-correction to fix GloSea5's bias in precipitation forecasts. Non-parametric bias-correction provided the most similar results with observed data compared to other techniques in hindcast for the past events, yet relatively generated some discrepancies in forecast. On the contrary, parametric bias-correction produced the most reliable results in both hindcast and forecast periods. The results of this study are expected to be applicable to various applications using seasonal forecast model such as water resources operation and management, hydropower, agriculture, etc.

• Proceedings of the Korea Water Resources Association Conference
• /
• 2018.05a
• /
• pp.150-150
• /
• 2018

The Numerical Weather Prediction (NWP) models provide information for weather forecasts. The highly nonlinear and complex interactions in the atmosphere are simplified in meteorological models through approximations and parameterization. Therefore, the simplifications may lead to biases and errors in model results. Although the models have improved over time, the biased outputs of these models are still a matter of concern in meteorological and hydrological studies. Thus, bias removal is an essential step prior to using outputs of atmospheric models. The main idea of statistical bias correction methods is to develop a statistical relationship between modeled and observed variables over the same historical period. The Model Output Statistics (MOS) would be desirable to better match the real time forecast data with observation records. Statistical post-processing methods relate model outputs to the observed values at the sites of interest. In this study three methods are used to remove the possible biases of the real-time outputs of the Weather Research and Forecast (WRF) model in Imjin basin (North and South Korea). The post-processing techniques include the Linear Regression (LR), Linear Scaling (LS) and Power Scaling (PS) methods. The MOS techniques used in this study include three main steps: preprocessing of the historical data in training set, development of the equations, and application of the equations for the validation set. The expected results show the accuracy improvement of the real-time forecast data before and after bias correction. The comparison of the different methods will clarify the best method for the purpose of the forecast skill enhancement in a real-time case study.

• Journal of the Korean Data and Information Science Society
• /
• v.25 no.6
• /
• pp.1557-1567
• /
• 2014

In this paper, I propose a general hypothesis that after the enactment of the Sarbanes-Oxley Act (SOA) financial statements convey more accurate and reliable corporate information to investors who in turn reflect such improvements in stock prices and test four practical hypotheses that simultaneously feature the degree of information asymmetry, forecast bias, and investor reaction to biased earnings information. The empirical results unanimously suggest that the post-SOA investors take advantage of the improvement in informational efficiency and accuracy and actively adjust for analyst forecast bias in earnings forecasts. The SOA indeed appears to achieve its primary goal of investor protection.

• Wind and Structures
• /
• v.30 no.4
• /
• pp.393-403
• /
• 2020

One of the growing concerns of the wind energy production is wind ramp events. To improve the wind ramp event forecasts, the nonlinear Kalman filter bias correction method was applied to 24-h wind speed forecasts issued from the WRF model at 70-m height in Zhangbei wind farm, Hebei Province, China for a two-year period. The Kalman filter shows the remarkable ability of improving forecast skill for real-time wind speed forecasts by decreasing RMSE by 32% from 3.26 m s_-1 to 2.21 m s_-1, reducing BIAS almost to zero, and improving correlation from 0.58 to 0.82. The bias correction improves the forecast skill especially in wind speed intervals sensitive to wind power prediction. The fact shows that the Kalman filter is especially suitable for wind power prediction. Moreover, the bias correction method performs well under abrupt weather transition. As to the overall performance for improving the forecast skill of ramp events, the Kalman filter shows noticeable improvements based on POD and TSS. The bias correction increases the POD score of up-ramps from 0.27 to 0.39 and from 0.26 to 0.38 for down-ramps. After bias correction, the TSS score is significantly promoted from 0.12 to 0.26 for up-ramps and from 0.13 to 0.25 for down-ramps.

• Atmosphere
• /
• v.30 no.4
• /
• pp.319-333
• /
• 2020

Aircraft observations constitute one of the major sources of temperature observations which provide three-dimensional information. But it is well known that the aircraft temperature data have warm bias against sonde observation data, and therefore, the correction of aircraft temperature bias is important to improve the model performance. In this study, the algorithm of the bias correction modified from operational KMA (Korea Meteorological Administration) global model is adopted in the preprocessing of aircraft observations, and the effect of the bias correction of aircraft temperature is investigated by conducting the two experiments. The assimilation with the bias correction showed better consistency in the analysis-forecast cycle in terms of the differences between observations (radiosonde and GPSRO (Global Positioning System Radio Occultation)) and 6h forecast. This resulted in an improved forecasting skill level of the mid-level temperature and geopotential height in terms of the root-mean-square error. It was noted that the benefits of the correction of aircraft temperature bias was the upper-level temperature in the midlatitudes, and this affected various parameters (winds, geopotential height) via the model dynamics.

• Knowledge Management Research
• /
• v.20 no.1
• /
• pp.195-213
• /
• 2019

This paper investigates the effects of firms' foreign market focus on the optimistic bias of analysts' earnings forecasts. Based on a sample of 852 U.S. manufacturing firms between 1994 and 2015, our empirical results suggest that higher growth of foreign market focus is associated with greater levels of analysts' forecast optimism. Drawing on the CEO career horizon and the upper echelon theory literature, we find evidence that CEOs' career horizon and functional background as a CFO moderates the relationship between the growth rate of foreign market focus and analysts' forecast optimism. This shows that while financial analysts perceive internationalization strategies as signaling growth potential, such perception can vary depending on CEOs' individual characteristics.

• Atmosphere
• /
• v.24 no.4
• /
• pp.503-514
• /
• 2014

Evaluation of predictability of numerical models for tropical cyclone track was performed using along-and cross-track component. The along-and cross-track bias were useful indicators that show the numerical models predictability associated with cause of errors. Since forecast errors, standard deviation and consistency index of along-track component were greater than those of cross-track component, there was some rooms for improvement in alongtrack component. There was an overall slow bias. The most accurate model was JGSM for 24-hour forecast and ECMWF for 48~96-hour forecast in direct position error, along-track error and cross-track error. ECMWF and GFS had a high variability for 24-hour forecast. The results of predictability by track type showed that most significant errors of tropical cyclone track forecast were caused by the failure to estimate the recurvature phenomenon.

• Atmosphere
• /
• v.30 no.2
• /
• pp.155-167
• /
• 2020

In order to produce more detailed and accurate information of river discharge and freshwater discharge, global high-resolution hydrodynamic model (CaMa-Flood) is applied to an operational land surface model of global seasonal forecast system. In addition, bias correction to grid runoff for the hydrodynamic model is attempted. CaMa-Flood is a river routing model that distributes runoff forcing from a land surface model to oceans or inland seas along continentalscale rivers, which can represent flood stage and river discharge explicitly. The runoff data generated by the land surface model are bias-corrected by using composite runoff data from UNH-GRDC. The impact of bias-correction on the runoff, which is spatially resolved on 0.5° grid, has been evaluated for 1991~2010. It is shown that bias-correction increases runoff by 30% on average over all continents, which is closer to UNH-GRDC. Two experiments with coupled CaMa-Flood are carried out to produce river discharge: one using this bias correction and the other not using. It is found that the experiment adapting bias correction exhibits significant increase of both river discharge over major rivers around the world and continental freshwater discharge into oceans (40% globally), which is closer to GRDC. These preliminary results indicate that the application of CaMa-Flood as well as bias-corrected runoff to the operational global seasonal forecast system is feasible to attain information of surface water cycle from a coupled suite of atmospheric, land surface, and hydrodynamic model.

• Atmosphere
• /
• v.25 no.2
• /
• pp.375-387
• /
• 2015

A Selected Multi-model CONsensus (SMCON) technique was developed and verified for the tropical cyclone track forecast in the western North Pacific. The SMCON forecasts were produced by averaging numerical model forecasts showing low 70% latest 6 h prediction errors among 21 models. In the homogeneous comparison for 54 tropical cyclones in 2013 and 2014, the SMCON improvement rate was higher than the other forecasts such as the Non-Selected Multi-model CONsensus (NSMCON) and other numerical models (i.e., GDAPS, GEPS, GFS, HWRF, ECMWF, ECMWF_H, ECMWF_EPS, JGSM, TEPS). However, the SMCON showed lower or similar improvement rate than a few forecasts including ECMWF_EPS forecasts at 96 h in 2013 and at 72 h in 2014 and the TEPS forecast at 120 h in 2013. Mean track errors of the SMCON for two year were smaller than the NSMCON and these differences were 0.4, 1.2, 5.9, 12.9, 8.2 km at 24-, 48-, 72-, 96-, 120-h respectively. The SMCON error distributions showed smaller central tendency than the NSMCON's except 72-, 96-h forecasts in 2013. Similarly, the density for smaller track errors of the SMCON was higher than the NSMCON's except at 72-, 96-h forecast in 2013 in the kernel density estimation analysis. In addition, the NSMCON has lager range of errors above the third quantile and larger standard deviation than the SMCON's at 72-, 96-h forecasts in 2013. Also, the SMCON showed smaller bias than ECMWF_H for the cross track bias. Thus, we concluded that the SMCON could provide more reliable information on the tropical cyclone track forecast by reflecting the real-time performance of the numerical models.