Are analysts' cash flow forecasts associated with improved earnings quality? Australian evidence

Coulton, Jeff; Saune, Naibuka; Taylor, Stephen L.

doi:10.1016/j.pacfin.2022.101758

Cited by 3 publications

(3 citation statements)

References 32 publications

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confidence: 99%

“…Other studies Coulton, Saune, and Taylor, (2022); Donelson et al (2013) and McInnis and Collins (2011) relate benchmark beating and discontinuities to analyst projections. Coulton et al (2022) failed to establish consistent evidence of improvement in the financial reporting quality following analysts' operating cash flow projections. Donelson et al (2013) found that discontinuity is present in the reported earnings but absent in the distribution of earnings (level), earnings surprise, and analyst forecast errors using the restated earnings.…”

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confidence: 99%

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Benchmark Beating and Earnings Manipulation in Nigerian Firms

Gbadebo

Akande

Harada

et al. 2022

5002

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Earnings management among firms remains a central focus for academics, auditors and regulatory bodies. Benchmark-motivated earnings management occurs when managers engage in opportunistic activities, including flexible use of accounting standards to misrepresent the information in a firm’s financial reports. Academic research has focused on how firms manage earnings to beat benchmarks, but the evidence regarding firms in emerging African stock markets is scarce and none is available for Nigeria. We applied both accruals quality and discretionary accruals models to detect whether firms that beat earnings benchmarks report earnings differently from others. Using 161 firms listed on the Nigerian Stock Exchange from 2002 to 2019, the study verifies how benchmark beaters manage earnings under the framework of two earnings thresholds – earnings (level) and positive earnings changes. Earnings persistence tests were carried out to verify whether benchmark beaters are consistent manipulators relative to non-beaters. The findings indicate that positive earnings benchmarks differ among the dichotomized groups. The evidence is not sufficient to validate that the change in earnings benchmarks motivates earnings discretions. However, the evidence may improve for larger samples. The study offers insights for informed decisions on the expectation of investment returns for investors, creditors, and other market partakers that require earnings information.

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confidence: 99%

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confidence: 99%

Benchmark Beating and Earnings Manipulation in Nigerian Firms

Gbadebo

Akande

Harada

et al. 2022

5002

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“…A alavancagem financeira da empresa, representada neste estudo pela dívida total da empresa dividida pelo patrimônio líquido (García-Meca & Martínez, 2005;Wang, Liu, & Wang, 2022) é uma variável que, está relacionada à accruals inesperados (Coulton, Saune, & Taylor, 2022), ou seja, maior gerenciamento e resultados por accruals discricionários (Brown, Lin, & Zhou, 2022), que impactam na qualidade dos lucros divulgados (Novaes et al, 2020), e, portanto, dificultaria a tarefa de previsão dos analistas.…”

Section: Alavancagemunclassified

Fatores comportamentais determinantes da acurácia da previsão de lucro dos analistas financeiros

Paula

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pelo incentivo, ensinamentos e tempo direcionados ao longo do meu curso. Sua dedicação e amor à pesquisa foram essenciais para meu aprendizado e sucesso na conclusão deste trabalho. Aos meus irmãos, Priscila e Abimael pelo estímulo e apoio para esta conquista e a toda minha família pela compreensão às ausências necessárias ao longo do curso. Aos professores do programa de Pós-Graduação em Controladoria e Contabilidade da Faculdade de Economia, Administração e Contabilidade, pelo aprendizado proporcionado e, aos os funcionários da secretaria pelo apoio durante todo o curso. E a todos que, de forma direta ou indireta, colaboraram para que este trabalho pudesse ser concluído. RESUMO PAULA, A. M. (2023). Fatores comportamentais determinantes da acurácia da previsão de lucro dos analistas financeiros (

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Cash Flow Dynamics: Amplifying Swing Models in a Volatile Economic Climate for Financial Resilience and Outcomes

Enkeleda Lulaj,

Minguez-Vera

2024

Sci. Ann. Econ. Bus.

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In a volatile economic climate, understanding cash flow dynamics is crucial for companies to improve financial resilience and outcomes. This research focuses on amplifying swing models such as Cash Flow Management (CFM), Solutions (CFS), Dynamics (CFD), Boosters (CFB), Innovations (CFI), and Strategic (CFS) - on cash flow dynamics in a volatile economic climate. By examining the relationship between these models and determinant variables, the study aims to provide insights that can assist companies in achieving financial resilience and outcomes. The data were collected from finance and accounting representatives of 200 companies ((manufacturing (107), services (56), and trade (37)) in Kosovo in 2023 (quarters 1, 2, 3, and the first two months of quarter 4), while processing was done through exploratory factorial, reliability, and multiple regression analyses conducted using SPSS and AMOS software. The results of the study reveal a significant relationship between each cash flow model and the determinant variables. This highlights the importance of these models in comprehending cash flow dynamics within a volatile economic climate. Factors such as optimization strategy clarity, continuous monitoring, effective working capital management, accurate financial decision-making, and technological improvements contribute to positive cash flow. Additionally, precise management of fluctuations, financial advantage, cooperative departmental approaches, and effective communication also play a role in cash flow dynamics. By extending swings models, the study provides valuable insights that can assist firms in achieving financial resilience and overcoming the challenges of a volatile economic environment.

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Are analysts' cash flow forecasts associated with improved earnings quality? Australian evidence

Cited by 3 publications

References 32 publications

Benchmark Beating and Earnings Manipulation in Nigerian Firms

Benchmark Beating and Earnings Manipulation in Nigerian Firms

Fatores comportamentais determinantes da acurácia da previsão de lucro dos analistas financeiros

Cash Flow Dynamics: Amplifying Swing Models in a Volatile Economic Climate for Financial Resilience and Outcomes

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