Do Analysts Strategically Employ Cash Flow Forecast Revisions to Offset Negative Earnings Forecast Revisions?

2016 ◽  
Vol 26 (2) ◽  
pp. 193-214 ◽  
Author(s):  
Choong-Yuel Yoo ◽  
Jinhan Pae
Keyword(s):  
Cash Flow ◽  
Earnings Forecast ◽  
Forecast Revisions ◽  
Cash Flow Forecast ◽  
Flow Forecast ◽  
Negative Earnings

scholarly journals The intra-industry effects of chapter 11 filings: Evidence from analysts’ earnings forecast revisions

2012 ◽  
Vol 9 (4-2) ◽  
pp. 262-268
Author(s):  
Gary L. Caton ◽  
Jeffrey Donaldson ◽  
Jeremy Goh
Keyword(s):  
Cash Flow ◽  
Earnings Forecasts ◽  
Cash Flows ◽  
Bad News ◽  
Earnings Forecast ◽  
Market Reactions ◽  
Forecast Revisions ◽  
Stock Market Reactions ◽  
Future Cash Flows

Shareholders suffer huge losses when firms they own file Chapter 11. Interestingly, even shareholders of rival companies experience statistically significant losses. We examine how the bad news associated with a bankruptcy filing is transferred to the filing firm’s rivals. Using revisions in analysts’ earnings forecasts as a proxy for changes in expected future cash flows, we find that after a bankruptcy filing the market revises downward its cash flow expectations for rivals. Regression analysis confirms a positive relation between changes in expected cash flow and stock market reactions. These findings are consistent with our hypothesis that bad news associated with bankruptcy filings are transferred to rivals through reductions in expected future cash flows

Literature Review of Treasury Cash Flow Forecast

2020 ◽  
Vol 7 (9) ◽  
pp. 521-523
Author(s):  
Shi Hua
Keyword(s):  
Literature Review ◽  
Cash Flow ◽  
Early Stage ◽  
Practical Work ◽  
Forecasting Methods ◽  
Great Progress ◽  
Cash Flow Forecasting ◽  
Cash Flow Forecast ◽  
Flow Forecast

In this paper, the related literatures of treasury cash flow forecasting in the early stage are reviewed. By reviewing the related literatures, it is found that the treasury cash flow forecasting in China has made great progress, and various forecasting methods have been used in practical work, but there is still room for optimization in treasury cash flow forecasting. Suggestions for optimization are put forward.

Preparing a cash flow forecast

In Practice ◽  
1994 ◽  
Vol 16 (5) ◽  
pp. 287-291
Author(s):  
Eric Jackson
Keyword(s):  
Cash Flow ◽  
Cash Flow Forecast ◽  
Flow Forecast

Assessing Alternative Proxies for the Expected Risk Premium

2005 ◽  
Vol 80 (1) ◽  
pp. 21-53 ◽  
Author(s):  
Christine A. Botosan ◽  
Marlene A. Plumlee
Keyword(s):  
Cash Flow ◽  
Risk Premium ◽  
Stock Price ◽  
Equity Capital ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Firm Risk ◽  
Specific Cost ◽  
Cash Flow Forecast ◽  
Flow Forecast

Managers, investors, and researchers have a compelling interest in identifying a reliable empirical proxy for firm-specific cost of equity capital (r). In theory, deducing r is possible if the market's future cash flow forecast and current stock price are observable. Practically, deducing r is dependent on the ability to estimate the market's forecasted terminal value. We evaluate five methods of deducing firm-specific r (labeled rDIVPREM, rGLSPREM, rGORPREM, rOJNPREM, and rPEGPREM) that deal with this conundrum differently. The extent to which the estimates are associated with firm risk in a stable and meaningful manner is the basis for our assessment. We find that the rDIVPREM and rPEGPREM estimates are consistently and predictably related to risk, while the alternatives are not. Based on these results, we conclude that rDIVPREM and rPEGPREM dominate the alternatives.

scholarly journals Cash flow forecast for South African firms

2015 ◽  
Vol 5 (1) ◽  
pp. 24-33 ◽  
Author(s):  
Yun Li ◽  
Luiz Moutinho ◽  
Kwaku K. Opong ◽  
Yang Pang
Keyword(s):  
South African ◽  
Cash Flow ◽  
Cash Flow Forecast ◽  
Flow Forecast

scholarly journals The Informativeness Of Cash Flow Forecasts And The Regulation FD Environment

2011 ◽  
Vol 9 (6) ◽  
pp. 29
Author(s):  
Karin A. Petruska
Keyword(s):  
Cash Flow ◽  
Forecast Accuracy ◽  
Time Frame ◽  
Earnings Forecast ◽  
Forecast Errors ◽  
Prior Literature ◽  
Regulation Fd ◽  
Mere Existence ◽  
Cash Flow Forecasts ◽  
Cash Flow Forecast

Prior literature shows that analysts forecast estimates serve as a proxy for the markets and investors beliefs which are unobservable. For decades, analysts have generated forecasts for use in valuation models including future estimates of earnings and growth. Yet, only recently, analysts have begun to voluntarily provide cash flow per share forecasts at the same time they are producing earnings per share forecasts for firms they follow. This study addresses whether the tendency of analysts to issue cash flow per share forecasts, as a result of changes in the regulatory environment, affects forecast properties. By examining the time frame surrounding Regulation FD, the analysis provides evidence that both the mere existence and the relative measure of analysts cash flow per share forecasts differ in explaining analysts earnings forecast accuracy. Specifically, the empirical results demonstrate that the relative value of analysts cash flow forecasts, the implied value of unexpected accruals, and cash flow forecast errors facilitate the reduction in analysts earnings forecast errors subsequent to the passage of Regulation FD. Further, the inverse relation between these analysts inputs and earnings forecast errors appear to be driven by firms with more accurate cash flow forecasts.

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