Results 261 to 270 of about 2,028 (299)

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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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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Why do accruals predict earnings?

Journal of Accounting and Economics, 2017
Abstract Higher accruals are associated with lower subsequent earnings. We show this phenomenon can be explained by the way sales, profits, and working capital respond to changes in a firm's product markets. Empirically, high accruals predict high subsequent sales growth but a long-lasting drop in both profits and profitability. Accruals also predict
Jonathan Lewellen, Robert J. Resutek
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Predicting earnings in a poor information environment

Journal of Contemporary Accounting & Economics, 2013
Abstract Financial intermediaries, such as analysts, play an important role in providing information to investors. However, a large segment of the market (about 39% of CRSP firms between 1992 and 2009) is not served by financial analysts, leaving investors in a poor information environment.
Weimin Wang, Frank Wang
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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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Earnings Predictability and the Direction of Analysts' Earnings Forecast Errors

The Accounting Review, 2003
Das et al. (1998) suggest that as earnings become less predictable, analysts issue increasingly optimistic forecasts to please managers and consequently gain, or at least limit the loss of, access to managers' private information. We reexamine the association between earnings forecast error and earnings predictability because there is evidence ...
Michael J. Eames, Steven M. Glover
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Equity Values and Prediction of Earnings with Disaggregation of Earnings in India

Global Business Review, 2018
This article examined the relative performance of aggregated and disaggregated earnings for valuation of equity and prediction of earnings in India. We measured three levels of earnings disaggregation: aggregate earnings, total accruals and cash flows, and four major constituents of accruals, then we estimated pooled as well as individual industry-wise
Pooja Kumari, Chandra Sekhar Mishra
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Using Industry Earnings to Predict Market Earnings

2016
วารสารวิชาชีพบัญชี JAP, 12, 34 (มิถุนายน 59)
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Classification Shifting and Earnings Predictability

SSRN Electronic Journal, 2018
The literature measures classification shifting as the relation between unexpected core earnings and income-decreasing special items. The general view in this literature is that managers shift core expenses to special items to inflate core earnings to achieve self-motivated reporting objectives.
Kelly Ha, Wayne B. Thomas
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The Predictive Content of Earnings Forecasts and Dividends

The Journal of Finance, 1983
ABSTRACTThis paper compares the properties of dividend announcements and management earnings forecasts as predictors of earnings and firm value. First, the two predictors are compared on the basis of their ability to predict earnings. Then the information they convey about firm value is assessed by comparison of the performance of investment strategies
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