Firm Performance and Analyst Forecast Accuracy Following Discontinued Operations: Evidence from the Pre-SFAS 144 and SFAS 144 Eras
Description:
Because of the non-recurring and transitory nature of discontinued operations, accounting standards require that the results of discontinued operations be separately reported on the income statement. Prior accounting literature supports the view that discontinued operations are non-recurring or transitory in nature, and also suggests that income classified as transitory has minimal relevance in firm valuation. Finance and management literature, however, suggest that firms discontinue operations…
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Date:
May 2017
Creator:
Guragai, Binod
Partner:
UNT Libraries