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By decomposing analysts' forecast errors into common and idiosyncratic components, we develop a simple model aimed at explaining the relationship between forecast uncertainty and analyst dispersion. Under this framework, we propose a new measure of earnings forecast uncertainty as the sum of...
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. Our empirical findings show that: (1) industries with higher sunk capital costs and profit uncertainty have significantly …
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. Our empirical findings show that: (1) industries with higher sunk capital costs and profit uncertainty have significantly …
Persistent link: https://www.econbiz.de/10001784015