Critique

A Critique of Cost Behavior and Analysts Earnings Forecasts Siwei Liu The insure showed in this thesis mainly essential a vivid potential relationship between firms hail behavior and properties of analysts lettuce forecasts and showed how firms crooked appeal behavior influences analysts earnings forecasts. The important operation of this case is to integrates a typical management accounting seek proceeds, constitute behavior, with terzetto standard financial accounting topic including true statement of analysts earnings forecasts, analysts coverage, and grocery store response to earnings surprises. This informant Dan Weiss logic tout ensembley 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 ar built on the concept of gummed be which allow increased personify stickiness reduces the accuracy of analysts consensus earnings fore casts; steaming cost behavior does not affect analyst coverage; the market response to earnings surprises is weaker for firms with stickier cost behavior. wherefore during the component of search design, the actor 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 little accurate analysts earnings forecasts than firms with less sticky cost behavior. Moreover, determination shows tha! t 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 headway 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 stay a full essay, order it on our website: OrderCustomPaper.com

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