Synapse
⌘+K
Synapse
PulseExploreClubsResearchersJournals
Instagram
HomeClubsExplore
March 18, 2026The Accounting Review

Analysts' Use of Information about Permanent and Transitory Earnings Components in Forecasting Annual EPS.

View Full Paper
Ask AI
Bookmark
Share

Authors

AAAshiq AliAKApril Klein

Discussion

Loading...

Member takes

Overview

This analysis examines analysts' abilities to incorporate earnings components into forecasts, indicating potential inefficiencies.

Key Points

  • The aim is to evaluate how well analysts understand the time-series characteristics of annual earnings when making forecasts.
  • Analyzed analysts' forecasts of annual earnings per share (EPS)
  • Investigated the recognition of quarterly earnings shocks
  • Assessed the utilization of available earnings information by analysts
  • Found evidence that analysts struggle to recognize time-series properties of earnings
  • Indicated inefficiencies in forecasting due to improper use of quarterly earnings information

Cite This Study

Ali et al. (1992) studied this question.

synapsesocial.com/papers/69ba425c4e9516ffd37a28f8https://doi.org/10.2308/tar-9605305873
View Full Paper
Ask AI
Bookmark
Share

Also Consider

Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context:

  1. 1The Formation of Earnings Expectations.1985
  2. 2Associations Between Forecast Errors and Excess Returns Near to Earnings Announcements.1987
  3. 3A Note on the Informational Content of Corporate Annual Earnings Forecasts.1978
  4. 4Security Price Response to Quarterly Earnings Announcements and Analysts' Forecast Revisions.1989
  5. 5Analysts' Forecasts.1991 · 12 citations