Gap between corporate earnings, non-financial measures affects forecasting

(North Carolina State University) A recent study finds that the more a company's earnings diverge from its non-financial resources, the less likely it is to issue a forecast of its annual earnings. For companies that issue a forecast, the larger the disconnect between a company's earnings and its key non-financial measures, the more the company overestimates its actual performance.

from EurekAlert! - Social and Behavioral Science http://bit.ly/2G8NOuj