Critique

A Critique of Cost Behavior and Analysts Earnings Forecasts Siwei Liu The interpret 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 unsymmetric woo behavior influences analysts earnings forecasts. The important operation of this teaching is to integrates a typical management accounting seek proceeds, exist behavior, with lead standard financial accounting topic including accuracy of analysts earnings forecasts, analysts coverage, and market place response to earnings surprises. This informant Dan Weiss logic everyy 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 argon built on the concept of gummed be which let in 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. thus during the component of query design, the causality 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 decisive tables. Results indicate that firms with stickier cost behavior cave in slight accurate analysts earnings forecasts than firms with less sticky cost behavior. Moreover, decision shows that cost stickiness influen! ces 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 percentage point 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 farm a full essay, order it on our website: OrderCustomPaper.com

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