This paper examines the association of comprehensive income with subsequent period net income as well as analysts’ earnings forecasts. Our results support the notion that comprehensive income is incrementally useful in predicting subsequent period changes in net income. We also document that comprehensive income is associated with analysts’ earnings forecast revisions and forecast errors. The e...

W correlate analysts’ forecast errors with temporal variation in investor sentiment. We find that when sentiment is high, analysts’ forecasts of one-year-ahead earnings and long-term earnings growth are relatively more optimistic for “uncertain” or “difficult-to-value” firms. Adding these forecast errors to a regression of stock returns on sentiment absorbs a sizable fraction of the explanatory...

This paper studied the relationship between the management characteristics and the earnings forecast disclosure willingness within Chinese listed companies. Management characteristics were being defined and summarized as four aspects: structure characteristics, incentive characteristics, background characteristics and external governance mechanism. The Logistic regression model was applied to c...

I examine the impact of management cash flow forecasts on investors and analysts. The news in management cash flow forecasts is priced beyond total earnings news. Analysts revise earnings forecasts more for the news in these forecasts than for the news in accruals. I further find that the market’s higher pricing of cash flow forecast news is greater for firms 1) with bad earnings news, 2) in fi...

Analysts publish earnings forecasts with serially correlated errors. We assess rational versus cognitive limitation explanations for analysts’ underreaction to earnings news. Institutional investor voting for all-star analyst selections reveals whether these investors prefer analysts to issue forecasts with less serially correlated errors. Consistent with it being potentially rational for analy...

Relying on the well-established theoretical result that uncertainty has a common and an idiosyncratic component, we propose a new measure of earnings forecast uncertainty as the sum of dispersion among analysts and the variance of mean forecast errors estimated by a GARCH model. The new measure is based on both common and private information available to analysts at the time they make their for...