Knowledge that Transforms

Forecasting, Quarterly earnings, Generalized distributed lag model, Time-series models

Disclosures, Management forecasts, Informational content, Bad news disclosures

Auditing, Auditor judgement, Hypothesis testing strategy

Accounting Research Methodology, Event studies, Wall Street Journal, Event dates

Quarterly earnings, Nonseasonal earnings, Time-series model, Forecasting content

* Professor, Cornell University; t Professor, Rice University. We wish to thank our colleagues and particularly Professors William H. Beaver and Joel Demski, both of Stanford University, and Robert J. Swieringa, Cornell University, for their careful reading of this long manuscript and the substantive improvements they suggested. The limitations and omissions remain our responsibility. 1 Given at the 1970 Annual Meeting of the American Accounting Association, the poem, if such is a valid description, was composed by the first editor of JAR, David Green, and published in JAR [1970] with appropriate disclaimers.

Katherine Beal Frazier, Robert W. Ingram, B. Mack Tennyson, A Methodology for the Analysis of Narrative Accounting Disclosures, Journal of Accounting Research, Vol. 22, No. 1 (Spring, 1984), pp. 318-331

Financial ratios, Error-in-Variable Problem, Industry average, Speed of adjustment