Results 261 to 270 of about 41,359 (312)

Shrunken earnings predictions are better predictions

Applied Financial Economics, 2001
Analysts’ earnings forecasts are not perfectly correlated with actual earnings. One statistical consequence is that the most optimistic and most pessimistic forecasts are usually too optimistic and too pessimistic. The forecasts’ accuracy can be improved by shrinking them towards the mean.
Manfred Keil, Gary Smith, Margaret H. Smith   +2 more
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Dividends, earnings, and predictability

Journal of Banking & Finance, 2017
Abstract We show that the dividend yield and earnings yield jointly are strong predictors of dividend growth. We motivate the joint specification with a theoretical model and show how omitting the earnings yield biases the dividend yield coefficient towards zero, explaining why the dividend yield by itself is a poor predictor of dividend growth.
Møller, Stig Vinther, Sander, Magnus
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Earnings management and earnings predictability: A quantile regression approach

Australian Journal of Management, 2020
This study argues that the managerial choice of earnings management strategy could be contingent upon a firm’s information asymmetry and such a strategy may affect the firm’s earnings predictability. Measuring information asymmetry by earnings predictability based on the subsequent industry-adjusted dispersion in analysts’ forecasts and employing a ...
Leon Li, Nen-Chen Richard Hwang, Gilbert V Nartea   +2 more
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Illiquidity and Earnings Predictability

SSRN Electronic Journal, 2011
This paper studies whether illiquidity affects the predictability of fundamental valuation variables. Firm-level, cross-sectional analyses show that returns of illiquid stocks contain less information about their firm's future earnings growth compared to those of more liquid stocks.
Jon N. Kerr, Gil Sadka, Ronnie Sadka
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Predicting Earnings Management: The Case of Earnings Restatements

SSRN Electronic Journal, 2003
This paper examines the usefulness of accounting information in predicting earnings management. We investigate a comprehensive sample of firms from 1971-2000 that restated annual earnings. We find that firms restating earnings have high market expectations for future earnings growth and have higher levels of outstanding debt.
Scott A. Richardson, A. Irem Tuna, Min Wu   +2 more
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Earnings Volatility and Earnings Prediction: Analysis and UK Evidence

Journal of Business Finance & Accounting, 2013
AbstractThis paper confirms that US evidence of a negative relationship between earnings persistence and earnings volatility applies to UK firms over the period 1991–2010. Our analytical framework highlights the possibility that this result may reflect downward estimation bias in earnings persistence (and persistence of cash flow and accruals ...
Clubb, Colin, Wu, Guoli
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The predictive qualities of earnings volatility and earnings uncertainty

Review of Accounting Studies, 2014
This study examines the differential predictive power of past earnings volatility for analyst forecast errors and future returns. Past earnings volatility jointly captures two correlated, but distinct, earnings properties: time-series earnings variation and uncertainty in future earnings. To distinguish between these two earnings properties, we develop
Dain C. Donelson, Robert J. Resutek
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The Variability of Earnings and Non‐Earnings Information and Earnings Prediction

Journal of Business Finance & Accounting, 1999
This paper examines the performance of a ‘composite’ model of earnings prediction that integrates current earnings and current price as predictors of next year's earnings. The results show that current earnings (current price) play a key role in predicting future earnings when the ratio of earnings variance to price variance is low (high).
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Can Stock Recommendations Predict Earnings Management and Analysts’ Earnings Forecast Errors?

Journal of Accounting Research, 1999
In this article we present evidence that a firm's stock price sensitivity to earnings news, as measured by outstanding stock recommendation, affects its incentives to manage earnings and, in turn, affects analysts’ex post forecast errors. In particular, we find a tendency for firms rated a Sell (Buy) to engage more (less) frequently in extreme, income ...
Jeffery S. Abarbanell, Reuven Lehavy
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Predictions of annual earnings using quarterly earnings, annual earnings and dividend payout ratios

Managerial and Decision Economics, 1984
AbstractThis study empirically examines two issues related to forecasting annual accounting earnings. The first issue studied is the improvement in forecasts of annual earnings that can be obtained by including information about dividend payout along with the past earnings series in forecasting models.
Gerald J. Lobo, R. D. Nair
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