We examine the sophistication of analysts' cash flow forecasts to better understand what accrual adjustments, if any, analysts make when forecasting cash flows. As a preliminary step, we first demonstrate that prior empirical tests used to evaluate the sophistication of analysts' cash flow...

We test predictions that managers issuing voluntary capex guidance learn from analyst feedbackand that this learning enhances investment efficiency and firm performance (Langberg andSivaramakrishnan, 2010). Our findings are consistent with these predictions. First, we find thatmanagers' capex...

Givoly, Hayn, and Lehavy (2013) dispute Call, Chen, and Tong's (2013) conclusion that analysts' cash flow forecasts represent sophisticated extensions of their earnings forecasts. Our primary purpose is to highlight the fundamental disagreement that leads to the divergent views on the...

We study how analysts' cultural attitudes to time orientation affect their production of long-term earnings forecasts, the profitability of their stock recommendations, and managerial myopia for the firms they cover. We find that analysts from a long-term oriented culture produce more long-term...