Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/257727 
Year of Publication: 
2020
Citation: 
[Journal:] International Journal of Financial Studies [ISSN:] 2227-7072 [Volume:] 8 [Issue:] 4 [Article No.:] 60 [Publisher:] MDPI [Place:] Basel [Year:] 2020 [Pages:] 1-24
Publisher: 
MDPI, Basel
Abstract: 
We examine whether analysts' cash flow forecasts improve firm value. First, we analyze whether the joint issuance of financial analysts' earnings and cash flow forecasts improve firm value. Second, we analyze whether the quality of analysts' cash flow forecasts improve firm value. The empirical results of our study are as follows. First, the joint issuance of analysts' earnings and cash flow forecasts has a significantly positive effect on firm value; providing cash flow forecasts reduces information asymmetry and increases earnings quality, thereby increasing corporate value. Second, the quality of analysts' cash flow forecasts has a significantly positive effect on firm value; the more accurate cash flow forecasts are, the higher firm value is. Our study provides empirical evidence for that the conclusion that cash flow forecasting information produced by financial analysts provides useful information for capital market participants in economic decision making.
Subjects: 
analysts&#x2019
cash flow forecasts
analysts&#x2019
earnings forecasts
firm value
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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