Do Analysts' Earnings Forecasts Fully Reflect the Information in Accruals?
Canadian Journal of Administrative Sciences, Vol. 22, No. 4, pp. 329-342, December 2005
Posted: 14 Jun 2006
This study investigates whether analysts correctly distinguish between discretionary and nondiscretionary accruals in forecasting eamings, and finds that they do not distinguish between the two types of accruals. The findings of this study complement and extend the findings of recent studies on analyst forecast inefficiency with respect to the information in accruals using altemative research designs.
Keywords: analyst forecast inefficiency, operating cash flows, accruals
JEL Classification: G14, M41
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