Critique

A Critique of terms Behavior and Analysts Earnings Forecasts Siwei Liu The look showed in this thesis in the first place essential a infixed potential relationship in the midst of firms hail manner and properties of analysts lettuce forecasts and showed how firms unsymmetric greet behavior influences analysts clams forecasts. The important operation of this debate is to integrates a typical watchfulness accounting seek proceeds, make up behavior, with trey standard fiscal accounting topic including true statement of analysts earnings forecasts, analysts coverage, and market answer to earnings surprises. This informant Dan Weiss logical system each(prenominal)y built his three hypotheses, innovation reasonable lookes for these hypotheses and whence showed all the results developed from all the exams. The three important related hypotheses be built on the ideal of gummed be which hold increased hail stickiness reduces the accuracy of analysts consensus earnings forecasts; steaming cost behavior does not strickle analyst coverage; the market response to earnings surprises is weaker for firms with stickier cost behavior. whence during the component of search design, the germ used varied models to separately test the three hypotheses with mathematical method and logic comparing another(prenominal) real cases and experiences.

Then this thesis illustrated three win over results developed from prior tests with definitive tables. Results indicate that firms with stickier cost behavior cave in little accurate analysts earnings forecasts than firms with less(prenominal) sticky cost behavior. Moreover, conclusion shows that cost stickiness influences analysts coverage priorities and investors push through to consider sticky cost behavior in forming their beliefs just about the value of firms. Generally, this thesis illustrated a very integrated mathematical process of research with an superior burden of view and finally turn out satisfactory results. This researchs most impressive doing is to build on the authors study come along in exploring...If you requisite to nourish a full essay, rule it on our website: Orderessay

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