The Debate Over the Sophistication of Analysts' Cash Flow Forecasts and a Correction of Givoly, Hayn, and Lehavy (2013)

9 Pages Posted: 13 Sep 2013

See all articles by Andrew C. Call

Andrew C. Call

Arizona State University (ASU) - School of Accountancy

Shuping Chen

University of Texas at Austin - Red McCombs School of Business

Yen H. Tong

Nanyang Technological University (NTU) - Nanyang Business School

Date Written: September 2013

Abstract

Givoly, Hayn, and Lehavy (2013) dispute Call, Chen, and Tong’s (2013) conclusion that analysts’ cash flow forecasts represent sophisticated extensions of their earnings forecasts. Our primary purpose is to highlight the fundamental disagreement that leads to the divergent views on the sophistication of analysts’ cash flow forecasts. We also correct a number of Givoly, Hayn, and Lehavy’s (2013) mis-characterizations of Call, Chen, and Tong (2013). We conclude by encouraging interested readers to consider both Givoly, Hayn, and Lehavy (2009) and Call, Chen, and Tong (2013) and to reach their own conclusions as to the sophistication of analysts’ cash flow forecasts.

Suggested Citation

Call, Andrew C. and Chen, Shuping and Tong, Yen H., The Debate Over the Sophistication of Analysts' Cash Flow Forecasts and a Correction of Givoly, Hayn, and Lehavy (2013) (September 2013). Available at SSRN: https://ssrn.com/abstract=2324960 or http://dx.doi.org/10.2139/ssrn.2324960

Andrew C. Call (Contact Author)

Arizona State University (ASU) - School of Accountancy ( email )

Tempe, AZ 85287
United States

Shuping Chen

University of Texas at Austin - Red McCombs School of Business ( email )

Austin, TX 78712
United States
521.471.5328 (Phone)

Yen H. Tong

Nanyang Technological University (NTU) - Nanyang Business School ( email )

Singapore 639798
Singapore
65-6790-5743 (Phone)

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