We provide new evidence about how analysts incorporate and improve on management ETR forecasts. Quarterly ETR reporting under the integral method provides mandatory point-estimate forecasts by management, but firms must record certain “discrete” tax items fully in the quarter they occur,...

We find that individual analysts following the same firm and quarter forecast different underlying street performance metrics. Relative to analysts whose street forecast is based on generally accepted accounting principles (GAAP), analysts who forecast street earnings using a non-GAAP...

Extant literature documents that analyst forecasts are optimistically biased and fail to incorporate information in prior returns. This paper extends similar tests to examine management forecast characteristics. We find that, in contrast to analyst forecast errors, management forecast errors...