TY  - BOOK
AU  - Keskek, Sami
AU  - Tse, Senyo
TI  - Changes in analysts' accrual-related forecast optimism after the disapperance of the accrual anomaly
SN  - 2380-2154
KW  - Financial analysts
KW  - Earnings forecasts
KW  - Accrual anomaly
KW  - External financing
N1  - ABSTRACT:

We investigate changes in analysts' accrua-related forecast optimism after the disappearance of the accrual anomaly. We find that such optimism persists in the no-anomaly period, particularly when analysts incentives are aligned with greater optimism (ite, for frms with high external financing), By contrast, the accrual-elated forecast optimism declines when analysts' incentives for optimism are low and in circumstances where analysts would have been more aware of accruals information after the anomaly became publicized (i., when analysts issued a cash low forecast). These findings suggest that analysts' incentives can offset forecast improvements that their heightened accrual awareness would otherwise allow. They also highlight the importance of considering both analysts incentives and knowledge when interpreting their forecasts
ER  -