Teoh, Siew Hong; Wong, T. J. - In: Review of Financial Studies 15 (2002) 3, pp. 869-900
We find that analysts' forecast errors are predicted by past accounting accruals (adjustments to cash flows to obtain reported earnings) among both equity issuers and nonissuers. Analysts are more optimistic for the subsequent four years for issuers reporting higher issue-year accruals. The...