We propose a modification to the Dechow and Dichev (2002) model (DD hereafter) by replacing realized next-period cash flows with forecasted future cash flows. We first theorize the relation between the modified- and original DD model and that between abnormal accruals from the modified DD model...

This study examines how sell-side analyst’s earnings forecast behavior are influenced by peer analysts’ forecast. Based on uncertainty management theory, we propose that observing the deviation between analysts’ forecast and peers’ forecast will enhance analysts’ perception of...