Professor Joe Brazel Discusses The Gap Between Corporate Earnings
A study was recently conducted and found that companies will not issue a forecast of its annual earnings if their earnings diverge from their non-financial resources. Within the study, researchers compared the 659 participating companies’ earning changes to median changes in its non-financial resources. “We found that the greater the DIFF, the more likely companies were to avoid forecasting,” said Joe Brazel, Professor of Accounting in Poole College of Management. “This was true whether earnings outpaced non-financial measures, or vice versa. And it makes sense; the larger the DIFF, the more uncertainty a company is likely facing.” Read more in WRAL Tech Wire.