Way back in 1934, Graham and Dodd observed the importance of earning power in investment theory. According to them, history of actual earning with a reasonable expectation should be approximated in future. The empirical study of Ball and Brown (1968) contends that of all the sources of...

Earnings forecast by management, investors and other entities are the main sources of information are considered. The significance of this variation depends on the forecast. This deviation is much lower, the prediction is more accurate On the other hand, and there are various sources for...