Max Hewitt

TL;DR: In this article, the authors investigate how decomposing the forecasting task and altering the presentation format combine to enable analysts and nonprofessional investors to acquire and accurately process financial statement information when operating cash flows and accruals are differentially persistent.

TL;DR: In this paper, the authors consider whether and when the operating/financial disaggregation improves forecasts of profitability, and they find that when using the 'components' forecasting approach, the co-binning of both disaggregations improves forecast of profitability and the incremental usefulness of the operating and financial disaggregation relative to a benchmark model incorporating aggregate information is a function of growth and accounting conservatism.

TL;DR: In this article, the authors consider whether and when the operating/financial disaggregation improves forecasts of profitability, and they find that the combination of both disaggregations only provides forecast improvement over a benchmark model incorporating aggregate information when the components forecasting approach is used.

TL;DR: This article found that investors no longer give managers the benefit of the doubt when additional information suggests that managers have either the opportunity or the incentive to report relatively smooth earnings, and that they perceive low risk when earnings are relatively smooth.

TL;DR: In this paper, the authors show that a model based on firm-specific estimates of the differential persistence of accruals and operating cash flows is incrementally useful for out-of-sample forecasting relative to cross-sectional models.