Discussion of “Are earnings forecasts more accurate when accompanied by cash flow forecasts?”

Reuven Lehavy ()
Additional contact information
Reuven Lehavy: University of Michigan

Review of Accounting Studies, 2009, vol. 14, issue 2, No 11, 392-400

Abstract: Abstract Call et al. (Rev Account Stud 2009, this issue) demonstrate that, relative to analysts who issue earnings but not cash flow forecasts, analysts who issue both forecasts (i) produce relatively more accurate earnings forecasts, (ii) have a better understanding of the persistence of current earnings, and (iii) are less likely to get fired. In my discussion, I highlight some general challenges facing research on analyst cash flow forecasts, demonstrate the diminishing difference in the relative accuracy over time (including its compete elimination by 2004), and examine the sensitivity of some of the evidence in Call et al. (2009) to the age of the forecast and to the presence of extreme bad-news earnings surprises.

Keywords: Earnings forecasts; Cash flow forecasts; Forecast accuracy (search for similar items in EconPapers)
JEL-codes: G24 G29 M41 (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11142-009-9090-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:reaccs:v:14:y:2009:i:2:d:10.1007_s11142-009-9090-y

Ordering information: This journal article can be ordered from
http://www.springer.com/accounting/journal/11142

DOI: 10.1007/s11142-009-9090-y

Access Statistics for this article

Review of Accounting Studies is currently edited by Paul Fischer

More articles in Review of Accounting Studies from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().