We examine how financial analysts and equity investors incorporate information on deferred taxes from carryforwards … into earnings forecasts and share prices, respectively. We focus on carryforwards because in providing this information … each period, management must use their private information about the firm's profitability prospects. Thus, accounting …

between annual excess returns and a broad set of information items derived from financial statements with the association … between excess returns and that information set plus the present value of five-year ahead analysts' earnings forecasts. We … thus bring to a sharp focus the incremental contribution (over financial statement information) of the major product of …