Analyst Reaction to Nonarticulation Between the Statement of Cash Flows and the Balance Sheet

Frischmann, P., Lin, K. and Wang, D. (2019), "Analyst reaction to non-articulation between the balance sheet and the statement of cash flows", Journal of Applied Accounting Research, Forthcoming

39 Pages Posted: 3 Jan 2020

See all articles by KC Lin

KC Lin

Central Michigan University - College of Business Administration

Dilin Wang

Rochester Institute of Technology

Peter J. Frischmann

Idaho State University - College of Business

Date Written: December 2, 2019

Abstract

We investigate the effect of non-articulation on analyst earnings forecast quality. We look for evidence on the relationship between non-articulation and analyst earnings forecast properties: forecast inaccuracy, forecast dispersion, and forecast bias. As we would expect that non-articulation obscures accounting information available to analysts, we posit that non-articulation increases forecast inaccuracy and forecast dispersion.

Keywords: nonarticulation, articulation errors, financial analyst, earnings forecasts, cash flow forecast, forecast inaccuracy, forecast dispersion, forecast bias

JEL Classification: M41; G17; G24

Suggested Citation

Lin, KC and Wang, Dilin and Frischmann, Peter J., Analyst Reaction to Nonarticulation Between the Statement of Cash Flows and the Balance Sheet (December 2, 2019). Frischmann, P., Lin, K. and Wang, D. (2019), "Analyst reaction to non-articulation between the balance sheet and the statement of cash flows", Journal of Applied Accounting Research, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3496889 or http://dx.doi.org/10.2139/ssrn.3496889

KC Lin (Contact Author)

Central Michigan University - College of Business Administration ( email )

Mt. Pleasant, MI 48858
United States

Dilin Wang

Rochester Institute of Technology ( email )

College of Business
105 Lomb Memorial Drive
Rochester, NY 14623-5608
United States

Peter J. Frischmann

Idaho State University - College of Business ( email )

Pocatello, ID 83209
United States
208-282-3501 (Phone)

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