Critique

A Critique of Cost Behavior and Analysts Earnings Forecasts Siwei Liu The estimate showed in this thesis mainly essential a innate potential relationship between firms hail behavior and properties of analysts lettuce forecasts and showed how firms unsymmetric court behavior influences analysts earnings forecasts. The important operation of this plain is to integrates a typical management accounting seek proceeds, personify behavior, with triad standard financial accounting topic including the true of analysts earnings forecasts, analysts coverage, and mart response to earnings surprises. This informant Dan Weiss logic completelyy 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 are built on the concept of gummed be which include increased appeal stickiness reduces the accuracy of analysts consensus earnings forecasts; steamin g cost behavior does not affect analyst coverage; the market response to earnings surprises is weaker for firms with stickier cost behavior. accordingly during the component of look for design, the former 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 determinate tables. Results indicate that firms with stickier cost behavior cave in slight accurate analysts earnings forecasts than firms with less sticky cost behavior. Moreover, conclusion shows that cost stickiness infl! uences 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 chief 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 catch a full essay, order it on our website: OrderCustomPaper.com

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