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

See all articles by Anwer S. Ahmed

Anwer S. Ahmed

Texas A&M University - Mays Business School

Jian Zhou

University of Hawaii at Manoa

Khalid Nainar

McMaster University - Michael G. DeGroote School of Business

Abstract

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

Suggested Citation

Ahmed, Anwer S. and Zhou, Jian and Nainar, S. M. Khalid, Do Analysts' Earnings Forecasts Fully Reflect the Information in Accruals?. Canadian Journal of Administrative Sciences, Vol. 22, No. 4, pp. 329-342, December 2005. Available at SSRN: https://ssrn.com/abstract=908550

Anwer S. Ahmed

Texas A&M University - Mays Business School ( email )

430 Wehner
College Station, TX 77843-4353
United States

Jian Zhou (Contact Author)

University of Hawaii at Manoa ( email )

Honolulu, HI 96822
United States

S. M. Khalid Nainar

McMaster University - Michael G. DeGroote School of Business ( email )

1280 Main Street West
Hamilton, Ontario L8S 4M4
Canada

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