The Accounting Review Vol. 48 No. 3 1973
An Empirical Examination of the Reliability of Published Predictions of Future Earnings.
Abstract
This article presents information on a study to examine the reliability of published predictions of future earnings. Reliability was examined by comparing predicted earnings with actual earnings for the same period. Reliability in this study was based on the degree of agreement between predicted earnings and actual earnings. Therefore, "reliability" was not used in the sense of declaring predicted earnings reliable or unreliable, but was used in the sense of the degree of closeness to being right. The study was restricted to examining the reliability of earnings predictions that could be included in the annual financial statements. Therefore, the first data requirement was that the earnings predictions be published in the Wall Street Journal within such a time period that the predictions could also be in the annual financial statements for the previous year. The Securities and Exchange Commission requires that annual reports of listed companies be issued no later than 120 days after the end of a firm's fiscal year.
- DOI
- 10.2308/tar-4494535
- Volume
- 48
- Issue
- 3
- Pages
- 502-510
- Language
- en
- Sources
- openalex crossref