Do Analysts Sacrifice Forecast Accuracy for Informativeness?

Abstract

A deviate from management guidance to correct for perceived earnings management. Although the deviations reduce forecast accuracy, they improve forecast informativeness, bringing the forecasts closer to the unmanaged earnings and reducing accruals mispricing. An implicit assumption in the literature is that more accurate analyst forecasts (i.e., estimates… (More)
DOI: 10.1287/mnsc.1120.1675

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