Prior studies identify several motives for why firms release management earnings forecasts (MFs). A common feature of such studies is they pool MFs when drawing inferences about a specific motive. By ignoring the heterogeneous rationales managers have to issue MFs, pooling could lead to biased...

Prior research generally argues that managers issue management earnings forecasts (MFs) to secure capital market benefits (i.e., reduce information asymmetry between managers and investors to lower a firm's cost of capital), to reduce the firm's litigation costs, or to allow managers to trade...

We investigate whether the adoption of IFRS in 2005 by Australian firms has been associated with a loss of potentially useful information about intangible assets, as conjectured by Matolcsy and Wyatt (2006). We find that the negative association between analyst forecast error...

Recent literature suggests that other information included with management earnings forecasts may not be useful to the market as a direct disclosure. I use regression analysis to investigate whether this type of disclosure can help analysts to formulate more accurate forecasts of earnings....

This paper assesses the performance of securities analysts in forecasting the future earnings of intangible firms. The assessment is relative to extrapolative time-series models of earnings forecasts. The paper's results show that the forecast errors produced by both analysts and extrapolative...

Our study delves into analysts' motivation to issue concurrent cash flow forecasts in addition to earnings forecasts to achieve the analysts' specific strategic objectives. To investigate this motivation, we use economics based signaling theory and psychology based support theory to develop our...

Sell-side analysts have been the subject of hundreds of academic studies. In this paper, I offer perspectives on the state of our understanding of analysts based on prior academic research. Additionally, several observations are offered, which question how descriptive certain widely held beliefs...

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...

This study examines the effects of gender on executive financial decision-making as it relates to management earnings forecast error. The primary question addressed is: do female and male executives behave differently when issuing management earnings forecasts? Additionally, the following...

We examine the relative accuracy of management and analyst forecasts of annual EPS. We predict and find that analysts' information advantage resides at the macroeconomic level. They provide more accurate earnings forecasts than management when a firm's fortunes move in concert with macroeconomic...