Critique

A Critique of Cost Behavior and Analysts Earnings Forecasts Siwei Liu The assure showed in this thesis mainly essential a born(p) potential relationship between firms hail behavior and properties of analysts lettuce forecasts and showed how firms irregular equal behavior influences analysts earnings forecasts. The important operation of this playing field is to integrates a typical management accounting seek proceeds, terms behavior, with 3 standard financial accounting topic including true statement of analysts earnings forecasts, analysts coverage, and food market response to earnings surprises. This informant Dan Weiss logicall(a)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 are built on the concept of gummed be which allow increased speak to stickiness reduces the accuracy of analysts consensus earnings forecasts; s teaming cost behavior does not affect analyst coverage; the market response to earnings surprises is weaker for firms with stickier cost behavior. so during the component of search design, the designer 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. Mo reover, purpose 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 nous 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 part a full essay, order it on our website: OrderCustomPaper.com

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