This study tests a model which suggests that the external forces on a firm, the size and age of the firm, the industry and competitive market in which a firm operates, the level of leverage of the firm, as well as whether it has good or bad news regarding future earnings have an impact on whether a firm provides precise forecasts in its MD&A. Furthermore, the model suggests that firms providing precise forward-looking statements in the MD&A have lower forecast errors. Using 2SLS, the proposed model is tested using forward-looking statements regarding sales, earnings per share, cash flow, and capital expenditures extracted from the 2004 and 2005 annual reports of firms listed on the 2002 Fortune 500 list.
| Identifer | oai:union.ndltd.org:nova.edu/oai:nsuworks.nova.edu:hsbe_etd-1078 |
| Date | 19 January 2010 |
| Creators | Morgan, Anita Rae |
| Publisher | NSUWorks |
| Source Sets | Nova Southeastern University |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | HCBE Theses and Dissertations |
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