Analysts’ Revenue Forecasts and Discretionary Revenues
| Autor: | Shih-Chu Chou, Sunay Mutlu |
|---|---|
| Rok vydání: | 2018 |
| Předmět: |
TheoryofComputation_MISCELLANEOUS
History ComputingMilieux_THECOMPUTINGPROFESSION Polymers and Plastics business.industry Accrual Accounting Monetary economics Industrial and Manufacturing Engineering Revenue recognition Revenue Cash flow Endogeneity Business and International Management business Accounts receivable |
| Zdroj: | SSRN Electronic Journal. |
| ISSN: | 1556-5068 |
| DOI: | 10.2139/ssrn.3295970 |
| Popis: | We investigate the disciplining role of analysts’ revenue forecasts on firms’ discretionary revenues. We analyze quarterly data and find evidence that initiation of analysts’ revenue forecasts reported in IBES is associated with a decrease in the magnitude of discretionary revenues. Our results are robust to alternative definitions of discretionary revenues. The evidence is consistent with the disciplining role of financial analysts. Further analyses show that accounts receivable is the primary accrual component that is affected by analysts’ revenue forecasts and that firms receiving more analysts’ revenue forecasts report a lower level of discretionary revenues. We use a placebo test with analysts’ cash flow forecasts to indicate that the change of discretionary revenues is a response specifically to revenue forecasts. We also provide additional tests that address endogeneity concerns. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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