Artikel
The effect of non-recurring items on analysts' earnings forecasts
This article discusses the effects of non-recurring profits and losses on statement users' decision-making processes from the perspective of securities analysts. We examine the relationship between analysts' forecast revisions and firms' non-recurring earnings. We find that 1) non-recurring gains and losses can influence analysts' earnings forecast revision; 2) compared with non-recurring items resulting from policy changes, analysts are more concerned about those attributed to changes in business scope; 3) if listed companies use non-recurring items to turn losses into gains during earnings management, it will weaken the effects of non-recurring items on analysts' earnings forecast revision. The results suggest that non-recurring items that result from changes in business scope incorporate information that users need for the future operation of the business. This article verifies the information relevance of non-recurring items and provides evidence for the necessity of non-recurring item disclosure.
- Language
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Englisch
- Bibliographic citation
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Journal: China Journal of Accounting Research ; ISSN: 1755-3091 ; Volume: 11 ; Year: 2018 ; Issue: 1 ; Pages: 21-31 ; Amsterdam: Elsevier
- Classification
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Management
- Subject
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Non-recurring items
Earnings forecasts
Revisions
- Event
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Geistige Schöpfung
- (who)
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Li, Nan
Su, Hongtong
Dong, Wanqing
Zhu, Kai
- Event
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Veröffentlichung
- (who)
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Elsevier
- (where)
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Amsterdam
- (when)
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2018
- DOI
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doi:10.1016/j.cjar.2017.10.001
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Li, Nan
- Su, Hongtong
- Dong, Wanqing
- Zhu, Kai
- Elsevier
Time of origin
- 2018
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