OLIVAREZ COLLEGE TAGAYTAY
E-Library
ONLINE PUBLIC ACCESS CATALOG

Changes in analysts' accrual-related forecast optimism after the disapperance of the accrual anomaly / Sami Keskek and Senyo Tse

By: Contributor(s): Material type: TextTextDescription: Vol 19 (1) pages 95-111 : illustrations ; 28 cmISSN:
  • 2380-2154
Uniform titles:
  • Journal of Financial Reporting / Spring 2024
Subject(s):
List(s) this item appears in: Periodical index
Tags from this library: No tags from this library for this title. Log in to add tags.
Star ratings
    Average rating: 0.0 (0 votes)
No physical items for this record

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.

There are no comments on this title.

to post a comment.