Basu, Sudipta; Hwang, LeeSeok; Jan, Ching-Lih - In: Journal of Business Finance & Accounting 25 (1998-11) 9-10, pp. 1207-1247
We theorize that accounting systems affect analysts' forecast accuracy through changes in earnings variability. We argue that the matching and historical cost principles reduce earnings variability, and hence, reduce analysts' earnings forecast errors. We also argue that restricting the choice...