Artigo Revisado por pares

Cost Behavior and Analysts’ Earnings Forecasts

2010; American Accounting Association; Volume: 85; Issue: 4 Linguagem: Inglês

10.2308/accr.2010.85.4.1441

ISSN

1558-7967

Autores

Dan Weiss,

Tópico(s)

Financial Reporting and Valuation Research

Resumo

ABSTRACT: This study examines how firms’ asymmetric cost behavior influences analysts’ earnings forecasts, primarily the accuracy of analysts’ consensus earnings forecasts. Results indicate that firms with stickier cost behavior have less accurate analysts’ earnings forecasts than firms with less sticky cost behavior. Furthermore, findings show that cost stickiness influences analysts’ coverage priorities and investors appear to consider sticky cost behavior in forming their beliefs about the value of firms. This study integrates a typical management accounting research topic, cost behavior, with three standard financial accounting topics (namely, accuracy of analysts’ earnings forecasts, analysts’ coverage, and market response to earnings surprises).

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