On The Predictability of Corporate Earnings Per Share Behavior

Chant, Peter D.

doi:10.1111/j.1540-6261.1980.tb03467.x

Cited by 47 publications

(4 citation statements)

References 12 publications

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“…Williams and Mitchell believed that the instability of the external environment is significantly related to the performance of the enterprise, and the external environment has a direct relationship with the current operating performance and future growth of the enterprise [10]. Chant analyzed the relationship between monetary policy and enterprise performance and believed that money supply and enterprise operating performance have a significant positive effect [11]. Zhao found that enterprises encouraged by industrial policies have more sufficient credit funds and mainly long-term credit; among them, state-owned enterprises have more sufficient credit resources than private enterprises.…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of Economic Policy Uncertainty on the ECONOMIC Benefits of China's Listed Iron and Steel Enterprises

LENORT,

YAO,

HAN

et al. 2023

METAL Conference Proeedings

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In 2015, China fully launched the supply-side reform and carried out the work of reducing iron and steel production overcapacity. However, the China-United States trade war that began in 2018 and the global COVID-19 pandemic that began in 2020 have had a massive impact and uncertainty on the development of China and even the global economy, and the external business risks of enterprises have increased significantly. These have led to a rapid rise in the uncertainty of China's economic policy. Based on the above background, this paper takes China's listed iron and steel enterprises from 2015 to 2021 as the research object to explore the impacts of China's economic policy uncertainty on the benefit of iron and steel enterprises. The research results show that economic policy uncertainty can significantly affect the economic benefits of iron and steel enterprises, and can significantly improve the economic benefits of iron and steel enterprises.

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Section: Literature Reviewmentioning

confidence: 99%

The Impact of Economic Policy Uncertainty on the ECONOMIC Benefits of China's Listed Iron and Steel Enterprises

LENORT,

YAO,

HAN

et al. 2023

METAL Conference Proeedings

View full text Add to dashboard Cite

show abstract

“…This approach to earnings predictability has been criticized for its many limitations. Chant (1980) claimed that forecasting of earnings using its past values alone is not the best approach to understand the predictability of earnings. It was said that future earnings cannot be predicted in isolation from other economic variables or information.…”

Section: Random Walk Theorymentioning

confidence: 99%

“…It was said that future earnings cannot be predicted in isolation from other economic variables or information. Chant (1980) designed an alternative measure of earnings predictability which posits that earnings information is a subset of the generality of public information. More so, it is believed that earnings are economic variables that easily interact with other economic variables.…”

Section: Random Walk Theorymentioning

confidence: 99%

“…The motivation for this study and the choice of this proxy as a measure of earnings quality came from two sources. Firstly, those who studied the time series properties of corporate earnings documented that such series follows a random walk process; that is unpredictable (Ball &Watts, 1972;Abbrecht, Lookabill &McKeown, 1977;Chant, 1980;Afego, 2012;Ogege & Mojekwu, 2013).…”

Section: Introductionmentioning

confidence: 99%

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Earnings Predictability of Quoted Firms in Nigeria

Olaniyi

Abogun

Salam

2020

BJMSR

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The inability of investors to predict future earnings of firms exposes them to further risk such that potential investors may be scared away while existing ones may be prompted to withdraw their investment. Thus, it becomes imperative to evaluate the earnings predictability of Nigerian quoted firms with a view to establish the ability or inability of earnings to predict itself. Also, the study examined the impact of volatility on earnings predictability of Nigerian quoted firms. The total number of seventy three (73) quoted Nigerian firms constitutes the population of this study and the entire 73 firms were studied. The causal relationship research design was adopted. The secondary data used were collected from the financial statements of the quoted firms for the period 1996 to 2015. The system generalized method of moment (GMM) was used to estimate the dynamic panel regression models of the study. The study found that earnings of firms are predictable. The study also found that volatility has adverse effect on earnings predictability. It was therefore recommended more interest/investment in Nigerian firms since earnings information is available and is predictable while managements of firms should reduce instability in reported earnings.

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Relative accuracy of judgemental and extrapolative methods in forecasting annual earnings

Armstrong

1983

Journal of Forecasting

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This paper identifies and analyses previously published studies on annual earnings forecasts. Comparisons of forecasts produced by management, analysts, and extrapolative techniques indicated that: (1) management forecasts were superior to professional analyst forecasts (the mean absolute percentage errors were 15.9 and 17.7, respectively, based on five studies using data from [1967][1968][1969][1970][1971][1972][1973][1974] and (2) judgemental forecasts (both management and analysts) were superior .to extrapolation forecasts on 14 of 17 comparisons from 13 studies using data from 1964-1979 (the mean absolute percentage errors were 21 .O and 28.4 for judgement and extrapolation, respectively).These conclusions, based on recent research, differ from those reported in previous reviews, which commented on less than half of the studies identified here. KEY WORDS Annual financial forecasts Judgement vs. extrapolation Management vs. analyst Amalgamated forecastsThis paper examines the accuracy of those methods currently used in forecasting annual earnings : management judgement, outside analyst judgement, and extrapolations. The first section draws upon research in finance and other fields to develop hypotheses concerning which forecasting methods would be most accurate for annual earnings forecasts. Section 2 presents a quantitative analysis of previously published studies, comparing management forecasts with analyst forecasts. In Section 3, a quantitative analysis is made of the evidence on judgement and extrapolative forecasts. The final sections offer proposals for further research and summarize the major conclusions.

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On The Predictability of Corporate Earnings Per Share Behavior

Cited by 47 publications

References 12 publications

The Impact of Economic Policy Uncertainty on the ECONOMIC Benefits of China's Listed Iron and Steel Enterprises

The Impact of Economic Policy Uncertainty on the ECONOMIC Benefits of China's Listed Iron and Steel Enterprises

Earnings Predictability of Quoted Firms in Nigeria

Relative accuracy of judgemental and extrapolative methods in forecasting annual earnings

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