Do Analysts’ Provision of Cash Flow Forecasts Facilitate Market Price Discovery?
博士 === 國立中央大學 === 企業管理研究所 === 100 === This study examines whether analysts’ provision of cash flow forecasts improves the efficiency of investor reaction to valuation implications of accruals. We find that investors tend to overestimate the information in accruals. However, there is a significant re...
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| Format: | Others |
| Language: | en_US |
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2012
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| Online Access: | http://ndltd.ncl.edu.tw/handle/43634628694284918455 |
| Summary: | 博士 === 國立中央大學 === 企業管理研究所 === 100 === This study examines whether analysts’ provision of cash flow forecasts improves the efficiency of investor reaction to valuation implications of accruals. We find that investors tend to overestimate the information in accruals. However, there is a significant reduction in investor mispricing of accruals for the firms having analysts’ cash flow forecasts, which suggests that the provision of cash flow forecasts helps investors readily decompose earnings surprise into the portion attributable to cash flow and the portion attributable to accruals, which increases the reliability of accruals and mitigates the mispricing typically associated with accruals.
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