This study assesses whether the direct method incrementally predicts future operating cash flow and earnings beyond the indirect method. Using a sample of Australian listed companies reporting under International Accounting Standards, results indicate that the direct method predicts future...

We adopt an information risk view and hypothesize that low quality financial disclosure related to equity pledging by controlling shareholders impairs analyst forecast quality. We sample Chinese A-share firms and find that the proportion of shares pledged (pledge ratio) by controlling...