We examine whether lenders use analyst forecasts of the borrowing firm's earnings when establishing covenant thresholds in private debt contracts. We find greater proximity between the analysts' consensus earnings forecast and the future earnings performance required by the contract among...

I/B/E/S is a common source of analyst earnings forecast data, and the reliability of these data is important for practice and academic research. Examining a common sample period, we compare annual earnings forecasts across two versions of the I/B/E/S detail file, one made available in 2009 and...

We examine the sophistication of analysts' cash flow forecasts to better understand what accrual adjustments, if any, analysts make when forecasting cash flows. As a preliminary step, we first demonstrate that prior empirical tests used to evaluate the sophistication of analysts' cash flow...