While Wall Street closely watches financial analysts’ earnings forecasts, Main Street often scrutinizes product quality relative to competition. Do firms with superior product competitiveness enjoy greater likelihood of beating analyst earnings target? And if so, is there contingency in this impact? We show that positive changes in product competitiveness contribute to the firm’s likelihood of ...

[1] Knowledge of trace gas fluxes at the land surface is essential for understanding the impact of human activities on the composition and radiative balance of the atmosphere. An ability to derive fluxes at the regional scale (on the order of 10–10 km), at the scale of ecosystems and political borders, is crucial for policy and management responses. Lagrangian (‘‘air mass-following’’) aircraft ...

This study examines whether sell-side equity analysts engage in “social learning” which their earnings forecasts for certain firms are influenced by the and outcomes of “peer” associated with other respective portfolios. We find that analyst optimism is negatively correlated recent forecast errors, peers, on analyst's portfolio. An also more likely to issue “bold” when peers recently issued sim...

Most operations models assume that individuals have perfect beliefs about random variables or stochastic processes. In reality, however, individuals make judgment errors and are subject to predictable biases. We leverage two fundamental psychological principles bounded cognition and representativeness to model individuals' forecasting errors and biases in a way that is portable to operations mo...

I develop a model in which analysts strategically time and exaggerate their forecasts to convince the public that they are skilled. The model’s key predictions are that an analyst will tend to forecast later if he has a better ex ante reputation, and he will tend to forecast earlier if the quality of public information is lower. Using a database of individual analysts’ earnings forecasts, I emp...

This study examines the relation of corporate earnings management to firm size. We observe that firm size plays differing roles in earnings management: Small-sized firms engage in more earnings management to avoid reporting losses than largeor medium-sized firms. On the other hand, largeand medium-sized firms exhibit more aggressive earnings management to avoid reporting earnings decreases than...

This Study seeks to scrutinize whether surplus free cash flow is correlated with earnings management, if auditor size moderates this relationship. To do so, modified Jones discretionary accrual model (1995) and audit firm size are used as audit quality indicator to measure earnings management. The research hypotheses are built upon a sample of 103 companies listed on the Tehran Stock Exchange d...

This study investigates the impact of information uncertainty on analysts’ earnings forecasts for a sample European companies from 2010 to 2019. We argue that representativeness, anchoring and adjustment, leniency biases jointly influence lead optimism. suggest boosts optimism as behavioral increase in situations low predictability. test through association between forecast errors and, separate...

In this paper, we re-examine the widely-held belief that analysts’ earnings per share (EPS) forecasts are superior to forecasts from a time-series model. Using a naive random walk time-series model for annual earnings, we investigate whether and when analysts’ annual forecasts are superior. We also examine whether analysts’ forecasts approximate market expectations better than expectations from...