Analyst vs. Market Forecasts of Earnings Management to Avoid Small Losses

Material TypeArticleLanguageEnglish
TitleAnalyst vs. Market Forecasts of Earnings Management to Avoid Small Losses Author(S)Michael Eames (Author)
Abstract  Burgstahler and Eames (2003) present evidence that analysts commonly anticipate earnings management to avoid small losses, but often incorrectly predict its occurrence. Here we consider whether the market's behavior mimics that of analysts. Our results suggest that analysts exhibit more forecast optimism in their zero earnings forecasts than in their other small earnings forecast levels, and markets exhibit less relative optimism at this point. At the 271–360 day forecast horizon, ...Paginationp649–674
SubjectEconomicsDescriptorsEconomics
Journal TitleJournal of Business Finance & Accounting  
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