Journal article
The joint information role of analysts' cash flow and earnings forecasts
Accounting & Finance, Vol.61(1), pp.499-541
2021
Abstract
We study whether the relative magnitudes of analysts' cash flow and earnings forecasts convey information about the persistence and value relevance of reported earnings. We find that reported earnings are likely to be more (less) persistent and value relevant when analysts forecast relatively moderate (extreme) levels of operating cash flows, relative to earnings. We also find that the market's response to a given earnings surprise is the strongest for moderate levels of cash flow forecasts relative to earnings. The joint information role of analysts' cash flow and earnings forecasts persists even after controlling for the absolute accruals in the model.
Details
- Title
- The joint information role of analysts' cash flow and earnings forecasts
- Authors
- Sandip Dhole (Author) - Monash UniversityFerdinand A. Gul (Author) - Deakin UniversitySagarika Mishra (Author) - Monash Univ, Clayton, Vic, AustraliaAnanda M. Pal (Author) - University of Calcutta
- Publication details
- Accounting & Finance, Vol.61(1), pp.499-541
- Publisher
- John Wiley & Sons, Inc.
- DOI
- 10.1111/acfi.12581
- ISSN
- 1467-629X
- Organisation Unit
- School of Business and Creative Industries; University of the Sunshine Coast, Queensland
- Language
- English
- Record Identifier
- 99679192502621
- Output Type
- Journal article
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