Critique

A Critique of Cost Behavior and Analysts Earnings Forecasts Siwei Liu The witness showed in this thesis mainly essential a raw(a) potential relationship between firms hail behavior and properties of analysts lettuce forecasts and showed how firms asymmetric represent behavior influences analysts earnings forecasts. The important operation of this account is to integrates a typical management accounting seek proceeds, exist behavior, with lead standard financial accounting topic including trueness of analysts earnings forecasts, analysts coverage, and securities industry response to earnings surprises. This informant Dan Weiss logic every(prenominal)y built his three hypotheses, design 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 concept of gummed be which embroil increased court stickiness reduces the accuracy of analysts consensus earnings f orecasts; steaming cost behavior does not affect analyst coverage; the market response to earnings surprises is weaker for firms with stickier cost behavior. because during the component of investigate design, the fountain used different models to separately test the three hypotheses with mathematical method and logic comparing another(prenominal) real cases and experiences.

Then this thesis illustrated three convincing results developed from prior tests with definitive tables. Results indicate that firms with stickier cost behavior cave in less(prenominal) accurate analysts earnings forecasts than firms with less sticky cost behavior. Moreover, findi! ng shows that cost stickiness influences analysts coverage priorities and investors appear to consider sticky cost behavior in forming their beliefs about the value of firms. Generally, this thesis illustrated a very integrated process of research with an superior foreland of view and finally proved satisfactory results. This researchs most impressive achievement is to build on the authors study approach in exploring...If you requisite to move a full essay, order it on our website: OrderCustomPaper.com

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