Journal of Accounting and Economics Vol. 57 No. 1 2014
Accounting earnings and gross domestic product
open access
Abstract
We document that aggregate accounting earnings growth is an incrementally significant leading indicator of growth in nominal Gross Domestic Product (GDP). Professional macro forecasters, however, do not fully incorporate the predictive content embedded in publicly available accounting earnings data. As a result, future nominal GDP growth forecast errors are predictable based on accounting earnings data that are available to professional macro forecasters in real time.
- DOI
- 10.1016/j.jacceco.2013.10.001
- Volume
- 57
- Issue
- 1
- Pages
- 76-88
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref