A Comparative Study of the Forecasting Accuracy of Holt‐Winters and Economic Indicator Models of Earnings Per Share For Financial Decision Making

Charles Brandon (Professor, Crummer Graduate School of Business, Rollins College, Florida)
Jeffrey E. Jarrett (Chairperson and Professor, Department of Management Science, University of Rhode Island)
Saleha B. Khumawala (Associate Professor, Department of Accountancy and Taxation, University of Houston)

Managerial Finance

ISSN: 0307-4358

Publication date: 1 February 1987

Abstract

Earnings forecasts provide useful numerical information concerning the expectations of a firm's future prospects and indicate management's ability to anticipate a firm's changing internal structure and external environment. The reasons for studying the accuracy of earnings forecasts is due to the Securities and Exchange Commission's position on financial forecasts and the issuance of a Statement of Position by the AICPA. These statements are important since they, in part, have motivated researchers to the importance of forecasting financial information. Consequently, if the disclosure of earnings forecasts in financial reports is permissable, the improvement of financial forecasts should be one of the primary concerns of the AICPA, the SEC, and numerous other interested groups.

Citation

Brandon, C., Jarrett, J.E. and Khumawala, S.B. (1987), "A Comparative Study of the Forecasting Accuracy of Holt‐Winters and Economic Indicator Models of Earnings Per Share For Financial Decision Making", Managerial Finance, Vol. 13 No. 2, pp. 10-15. https://doi.org/10.1108/eb013581

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Publisher

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MCB UP Ltd

Copyright © 1987, MCB UP Limited

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