What question did this study set out to answer?

The aim is to investigate how firm size influences the predictive ability of quarterly earnings data.

March 18, 2026The Accounting Review

Firm-Size and the Predictive Ability of Quarterly Earnings Data.

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Authors

ABAllen W. BathkeFlorida State University KLKenneth S. LorekFlorida State University CWC. Lee WillingerUniversity of Oklahoma

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Implication

This analysis uncovers how firm size affects the predictive power of quarterly earnings data across firms, implying significant forecasting disparities.

Key Points

The aim is to investigate how firm size influences the predictive ability of quarterly earnings data.
Sample of 109 firms from the New York Stock Exchange categorized by size
Time-series modeling using ARIMA models
Multivariate analysis of variance to compare predictive abilities based on firm size
Focus on best fitting models for one-step-ahead earnings forecasts
Significant differences in predictive ability based on firm size at the .012 level
Large and medium-sized firms had more accurate forecasts than smaller firms at the .05 level
Consistent findings in supplementary analysis for nonseasonal and volatile growth firms

Cite This Study

Bathke et al. (1989) studied this question.

synapsesocial.com/papers/69ba423c4e9516ffd37a2455 https://doi.org/10.2308/tar-4485416

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Implication

This analysis uncovers how firm size affects the predictive power of quarterly earnings data across firms, implying significant forecasting disparities.

Firm-Size and the Predictive Ability of Quarterly Earnings Data.

Discussion

Member takes

Implication

Key Points

Cite This Study

Firm-Size and the Predictive Ability of Quarterly Earnings Data.

Discussion

Member takes

Implication

Key Points

Cite This Study

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