Earnings Uncertainty and Attention

2018 ◽  
Author(s):  
Badrinath Kottimukkalur
Keyword(s):  
Earnings Uncertainty

COMMENTARY: Volatility Forecasting

2018 ◽  
Keyword(s):  
Market Efficiency ◽  
Expected Value ◽  
Volatility Forecasting ◽  
Number Of Factors ◽  
Lower Baseline ◽  
Earnings Uncertainty

This paper provides a perspective on volatility forecasting. The basic idea is that a number of factors are leading to volatility having a lower baseline expected value than in prior years. These factors include lower earnings uncertainty, greater market efficiency, better market-marking, and the fact that volatility trading itself tends to reduce volatility.

Director Industry Expertise and Voluntary Corporate Disclosure

2020 ◽  
Vol 10 (03) ◽  
pp. 2050012
Author(s):  
Natasha Burns ◽  
Kristina Minnick ◽  
Kartik Raman
Keyword(s):  
Supply Chain ◽  
Instrumental Variables ◽  
Poor Performance ◽  
Board Composition ◽  
Corporate Disclosure ◽  
Voluntary Disclosures ◽  
Corporate Transparency ◽  
Exogenous Shocks ◽  
Earnings Uncertainty ◽  
Industry Expertise

We examine if firms with directors with related industry expertise (DRIs), or directors that are supply chain partners, exhibit a greater propensity to forecast earnings, and improve the specificity and accuracy of forecasts. Using instrumental variables to mitigate endogeneity, we find that DRIs and supply chain partners possess unique insights which improve managerial forecasts especially when there is greater earnings uncertainty (innovations along the supply chain, poor performance, operating in volatile industries). We use director deaths as exogenous shocks to board composition and confirm results. Results indicate that DRIs play an informational role in enhancing voluntary disclosures and improving corporate transparency.

The predictive qualities of earnings volatility and earnings uncertainty

2014 ◽  
Vol 20 (1) ◽  
pp. 470-500 ◽  
Author(s):  
Dain C. Donelson ◽  
Robert J. Resutek
Keyword(s):  
Earnings Volatility ◽  
Earnings Uncertainty

Information Technology Capability: Firm Valuation, Earnings Uncertainty, and Forecast Accuracy

2007 ◽  
Vol 21 (2) ◽  
pp. 27-48 ◽  
Author(s):  
Li Wang ◽  
Pervaiz Alam
Keyword(s):  
Information Technology ◽  
Intangible Assets ◽  
Explanatory Power ◽  
Forecast Accuracy ◽  
Firm Valuation ◽  
Organizational Resources ◽  
Implementation Challenges ◽  
Current Accounting ◽  
It Capability ◽  
Earnings Uncertainty

Prior literature argues that information technology (IT) capability, an organization's ability to effectively use IT-based resources in combination with other organizational resources, can create unique and sustainable competitive advantages and thus intangible assets for a company. However, current accounting rules do not allow the capitalization of IT-enabled intangible assets. We hypothesize that IT-enabled intangible assets are value-relevant and provide incremental explanatory power for firm valuation beyond traditional accounting information. IT capability is inherently risky as it is subject to implementation challenges, technological complexity, and innovative integration of IT investments with other organizational resources. Thus, we argue that IT capability is positively associated with future earnings uncertainty and decreased analyst forecast accuracy. Using InformationWeek 500 ranking index as a proxy for IT capability, we find evidence supporting these hypotheses. This study contributes to the growing literature on IT capability.

Earnings Uncertainty and Analyst Forecast Herding

2009 ◽  
Vol 38 (4) ◽  
pp. 545-574 ◽  
Author(s):  
Minsup Song ◽  
Doseong Kim ◽  
Chaehwan Won
Keyword(s):  
Analyst Forecast ◽  
Earnings Uncertainty
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