search query: @indexterm FORECASTING / total: 1417
reference: 148 / 1417
| Author: | Abarbanell, J. Lehavy, R. |
| Title: | Can Stock Recommendations Predict Earnings Management and Analysts' Earnings Forecast Errors? |
| Journal: | Journal of Accounting Research
2003 : MAR, VOL. 41:1, p. 1-32 |
| Index terms: | STOCKS EARNINGS MANAGEMENT FORECASTING |
| Language: | eng |
| Abstract: | In this article the authors present evidence that a firm's stock price sensitivity to earnings news, as measured by outstanding stock recommendation, affects its incentives to manage earnings and, in turn, affects analysts' ex post forecast errors. In particular, the authors find a tendency for firms rated a Sell (Buy) to engage more (less) frequently in extreme, income-decreasing earnings management, indicating that they have relatively stronger (weaker) incentives to create accounting reserves especially in the form of earnings baths than other firms. In contrast, firms rated a Buy (Sell) are more (less) likely to engage in earnings management that leaves reported earnings equal to or slightly higher than analysts' forecasts. |
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