This paper makes one claim, supported by three arguments.
The claim is this. IR departments capture only a small fraction of the immense value embedded in high quality consensus forecasts, relative to the time and effort they expend on the process.
The first argument is that most IR departments gather consensus in order to manage over the short term rather than measure over the long term. This is a missed opportunity.
The second argument is that consensus forecasts are uniquely able to enhance corporate governance. However, they are rarely used for this purpose.
The third argument is that all stakeholders benefit from transparent disclosure of forecasts. But such disclosure is the exception, because of the consensus impasse.
The paper proposes solutions to break the consensus impasse.
About ACE Consensus
ACE is in the business of 'whether' forecasting. We are driven by the conviction that consensus forecasts should be about much more than just managing market expectations. Our mission is to develop the most effective suite of tools to unlock the value embedded in forecast data.
Published: 13 March, 2015