Do analysts understand the valuation implications of accounting conservatism when forecasting target prices?

• المؤلفون الرئيسيون: KIM, Jae Bum, Nekrasov, Alexander, Shroff, Pervin, Simon, Andreas
• التنسيق: text
• اللغة: English
• منشور في: Institutional Knowledge at Singapore Management University 2012
• الموضوعات: Accounting; Portfolio and Security Analysis
• الوصول للمادة أونلاين: https://ink.library.smu.edu.sg/soa_research/902; https://ink.library.smu.edu.sg/context/soa_research/article/1901/viewcontent/Analyst_understand_valuation_acc_conservatism_wp_2012.pdf
• المؤسسة: Singapore Management University

Conservatism in earnings does not have a direct impact on the present value of future cash flows. This paper examines whether financial analysts correctly undo the effect of accounting conservatism incorporated in their own earnings forecasts in arriving at their target price forecasts. Based on pri...