Accounting earnings and gross domestic product

Yaniv Konchitchki and Panos N. Patatoukas

Journal of Accounting and Economics, 2014, vol. 57, issue 1, 76-88

Abstract: We document that aggregate accounting earnings growth is an incrementally significant leading indicator of growth in nominal Gross Domestic Product (GDP). Professional macro forecasters, however, do not fully incorporate the predictive content embedded in publicly available accounting earnings data. As a result, future nominal GDP growth forecast errors are predictable based on accounting earnings data that are available to professional macro forecasters in real time.

Keywords: Accounting earnings; Corporate profits; Gross Domestic Product (GDP) (search for similar items in EconPapers)
JEL-codes: E00 E01 M41 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (48)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaecon:v:57:y:2014:i:1:p:76-88

DOI: 10.1016/j.jacceco.2013.10.001

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