Purpose – This paper seeks to examine the predictive ability of disaggregated earnings in forecasting future profitability conditional on keiretsu affiliation in the context of Japan. Design/methodology/approach – Industry-adjusted future profitability measure is regressed on current...

Purpose – This paper seeks to examine the predictive ability of disaggregated earnings in forecasting future profitability conditional on keiretsu affiliation in the context of Japan. Design/methodology/approach – Industry‐adjusted future profitability measure is regressed on current...