01498nas a2200145 4500008004100000245009900041210006900140260000900209520093700218653001501155100002201170700001901192700001601211856012501227 2019 eng d 00 aAnalyst reaction to non-articulation between the balance sheet and the statement of cash flows 0 aAnalyst reaction to nonarticulation between the balance sheet an c2019 3 aPurpose: The purpose of this paper is to investigate the effect of non-articulation on analyst earnings forecast quality. The authors look for evidence on the relationship between non-articulation and analyst earnings forecast properties: forecast inaccuracy, forecast dispersion and forecast bias.
Design/methodology/approach: The empirical tests are primarily based analyst earnings and cash flow forecasts covered by Institutional Broker Estimate System and financial statement information obtained from Compustat North America database.
Findings: The authors hypothesize and find that non-articulation is positively related to analyst forecast dispersion, forecast accuracy and forecast bias for one-year ahead of earnings. The effects of non-articulation on analyst earnings forecast inaccuracy and bias are neutralized when the analyst issues a cash flow forecast and when such forecast provides accurate information … 10 aAccounting 1 aFrischmann, Peter 1 aLin, Kuan-Chen 1 aWang, Dilin u/biblio/analyst-reaction-non-articulation-between-balance-sheet-and-statement-cash-flows