Abstract

http://ssrn.com/abstract=1118975
 
 

Citations (96)



 
 

Footnotes (19)



 


 



Earnings Forecasting Research: Its Implications for Capital Markets Research


Lawrence D. Brown


Temple University - Department of Accounting


International Journal of Forecasting, Vol. 9, No. 3, 1993

Abstract:     
Since the early 198Os, earnings forecasting research has become much more closely aligned with capital markets research. Capital markets research requires a proxy for the (unobservable) market earnings expectation and earnings forecasting research has provided such proxy measures. Questions considered in this paper include: (1) if annual earnings follow a random walk or an IMA (1, 1) model, does this mean that earnings changes cannot be predicted? (2) Do stock prices act as if quarterly earnings follow a seasonal random walk with drift process? (3) Is the predictive mode1 which is best on the forecast accuracy dimension also best on the market association dimension? (4) How do analysts formulate their earnings expectations? (5) What is the role of earnings forecasting in `earnings response coefficient' and `post-earnings announcement drift' studies? (6) What is the likely role of earnings forecasting research in future capital market studies?

Number of Pages in PDF File: 26

Keywords: Earnings forecasting; Forecast accuracy; Market association; Post-earnings announcement drift; Future research

Accepted Paper Series


Download This Paper

Date posted: April 14, 2008  

Suggested Citation

Brown, Lawrence D., Earnings Forecasting Research: Its Implications for Capital Markets Research. International Journal of Forecasting, Vol. 9, No. 3, 1993. Available at SSRN: http://ssrn.com/abstract=1118975

Contact Information

Lawrence D. Brown (Contact Author)
Temple University - Department of Accounting ( email )
Philadelphia, PA 19122
United States

Feedback to SSRN


Paper statistics
Abstract Views: 2,324
Downloads: 755
Download Rank: 17,206
Citations:  96
Footnotes:  19

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.501 seconds