How useful are forecasts of corporate profits?
AbstractIf forecasters predict higher earnings for corporations, the stock market will rise. Stock prices will drop with a forecast of lower earnings. But are such forecasts on the money? Dean Croushore uses data from the Survey of Professional Forecasters to check the accuracy of forecasts of corporate profits. The results show that, despite the volatility of corporate profits, the forecasts are rational
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Bibliographic InfoArticle provided by Federal Reserve Bank of Philadelphia in its journal Business Review.
Volume (Year): (1999)
Issue (Month): Sep ()
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- John H. Cochrane, 1998.
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NBER Working Papers
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- Dean Croushore, 1993. "Introducing: the survey of professional forecasters," Business Review, Federal Reserve Bank of Philadelphia, issue Nov, pages 3-15.
- Francis X. Diebold & Jose A. Lopez, 1995.
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9525, Federal Reserve Bank of New York.
- Croushore, Dean & Stark, Tom, 2001.
"A real-time data set for macroeconomists,"
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Elsevier, vol. 105(1), pages 111-130, November.
- Baghestani, Hamid & Khallaf, Ashraf, 2012. "Predictions of growth in U.S. corporate profits: Asymmetric vs. symmetric loss," International Review of Economics & Finance, Elsevier, vol. 22(1), pages 222-229.
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