INSEAD Book in the Spotlight – Financial statement analysis and earnings forecasting by Steven J. Monahan

The Doriot and Tanoto Libraries are hosting a showcase on the following INSEAD book:

“Financial statement analysis and earnings forecasting” by Steven J. Monahan

The author synthesizes and discusses academic research on financial statement analysis and earnings forecasting. The author begins by discussing analytical and empirical evidence that shows that earnings, not dividends or free cash flows, are the payoffs that investors forecast when estimating value. This result is fundamental and it provides clear motivation for studying earnings forecasting and the role that historical accounting numbers play in the earnings-forecasting process. The author then provides a detailed discussion of the research design choices that are made when developing and evaluating an earnings-forecasting approach. The author describes the tradeoffs involved when making these choices and the author reviews the extant empirical literature. An overarching theme of this discussion is that there are substantial research opportunities.

From 07 to 20 January.