Analyst target price accuracy and the incidence of cash flow forecasts

Accounting and Finance

Electronic data

CFpaper_23022015
Submitted manuscript, 428 KB, PDF document

Research output: Working paper

Published

Standard

Analyst target price accuracy and the incidence of cash flow forecasts. / Hashim, Noor; Strong, Norman.
Lancaster: The Department of Accounting and Finance, 2015.

Research output: Working paper

Author

Hashim, Noor ; Strong, Norman. / Analyst target price accuracy and the incidence of cash flow forecasts. Lancaster : The Department of Accounting and Finance, 2015.

Bibtex

@techreport{df6bce43146c4ef581e3bc301fbd960c,

title = "Analyst target price accuracy and the incidence of cash flow forecasts",

abstract = "Research shows that analyst target price accuracy is limited and yet evidence on the factors driving this limited accuracy is inconclusive. Complementing the results of recent studies that show that the increasing incidence of cash flow forecasts in analyst reports has helped mitigate accruals mispricing, we address the question: are analyst target prices more accurate when accompanied by cash flow forecasts than when they are not? Using propensity score matching to control for selection bias, we estimate the effect of disclosing cash flow forecasts on the target price accuracy of US stocks during 2000–2010. The results suggest that target prices are more accurate when analysts also disclose cash flow forecasts. The paper contributes to the continuing debate about the usefulness of analyst target prices as well as the usefulness of analyst cash flow forecasts.",

author = "Noor Hashim and Norman Strong",

year = "2015",

month = feb,

language = "English",

publisher = "The Department of Accounting and Finance",

type = "WorkingPaper",

institution = "The Department of Accounting and Finance",

}

RIS

TY - UNPB

T1 - Analyst target price accuracy and the incidence of cash flow forecasts

AU - Hashim, Noor

AU - Strong, Norman

PY - 2015/2

Y1 - 2015/2

N2 - Research shows that analyst target price accuracy is limited and yet evidence on the factors driving this limited accuracy is inconclusive. Complementing the results of recent studies that show that the increasing incidence of cash flow forecasts in analyst reports has helped mitigate accruals mispricing, we address the question: are analyst target prices more accurate when accompanied by cash flow forecasts than when they are not? Using propensity score matching to control for selection bias, we estimate the effect of disclosing cash flow forecasts on the target price accuracy of US stocks during 2000–2010. The results suggest that target prices are more accurate when analysts also disclose cash flow forecasts. The paper contributes to the continuing debate about the usefulness of analyst target prices as well as the usefulness of analyst cash flow forecasts.

AB - Research shows that analyst target price accuracy is limited and yet evidence on the factors driving this limited accuracy is inconclusive. Complementing the results of recent studies that show that the increasing incidence of cash flow forecasts in analyst reports has helped mitigate accruals mispricing, we address the question: are analyst target prices more accurate when accompanied by cash flow forecasts than when they are not? Using propensity score matching to control for selection bias, we estimate the effect of disclosing cash flow forecasts on the target price accuracy of US stocks during 2000–2010. The results suggest that target prices are more accurate when analysts also disclose cash flow forecasts. The paper contributes to the continuing debate about the usefulness of analyst target prices as well as the usefulness of analyst cash flow forecasts.

M3 - Working paper

BT - Analyst target price accuracy and the incidence of cash flow forecasts

PB - The Department of Accounting and Finance

CY - Lancaster

ER -

Research

Electronic data