Abstract

http://ssrn.com/abstract=374961
 
 

Citations



 


 



An Empirical Analysis of Analysts' Cash Flow Forecasts


Mark L. DeFond


University of Southern California - Leventhal School of Accounting

Mingyi Hung


Hong Kong University of Science & Technology (HKUST); University of Southern California - Leventhal School of Accounting; Hong Kong University of Science & Technology (HKUST) - Department of Accounting


Journal of Accounting and Economics, Vol. 35, No. 1, pp. 73-100, April 2003

Abstract:     
This study investigates the relatively recent and growing trend in analysts disseminating operating cash flow forecasts. Consistent with our expectations, we find that analysts tend to forecast cash flows for firms where accounting, operating and financing characteristics suggest that cash flows are likely to be useful in interpreting earnings and assessing firm viability. Specifically, we find that analysts tend to forecast cash flows for firms with (1) large accruals, (2) more heterogeneous accounting choices relative to their industry peers, (3) high earnings volatility, (4) high capital intensity, and (5) poor financial health. These findings are consistent with financial analysts responding to market-based incentives to provide market participants with value-relevant information.

Keywords: analysts' forecasts, cash flows, earnings' usefulness

JEL Classification: G29, G12, M41, N20


Not Available For Download

Date posted: January 29, 2003  

Suggested Citation

DeFond, Mark L. and Hung, Mingyi, An Empirical Analysis of Analysts' Cash Flow Forecasts. Journal of Accounting and Economics, Vol. 35, No. 1, pp. 73-100, April 2003. Available at SSRN: http://ssrn.com/abstract=374961

Contact Information

Mark DeFond
University of Southern California - Leventhal School of Accounting ( email )
Accounting Building, Room 206
Los Angeles, CA 90089-0441
United States
213-740-5016 (Phone)
213-747-2815 (Fax)
Mingyi Hung (Contact Author)
Hong Kong University of Science & Technology (HKUST) ( email )
Clearwater Bay
Kowloon
Hong Kong
University of Southern California - Leventhal School of Accounting ( email )
CA
United States
Hong Kong University of Science & Technology (HKUST) - Department of Accounting ( email )
Clear Water Bay
Kowloon
Hong Kong
Feedback to SSRN


Paper statistics
Abstract Views: 2,054

© 2015 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo6 in 0.281 seconds