HCBE Theses and Dissertations

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Date of Award

2010

Document Type

Dissertation - NSU Access Only

Degree Name

Doctor of Business Administration (DBA)

Department

H. Wayne Huizenga School of Business and Entrepreneurship

Advisor

Joung Kim

Committee Member

Lori Holder-Webb

Committee Member

Roberta Rodriguez Thomas

Abstract

This study tests a model which suggests that the external forces on a firm, the size and age of the firm, the industry and competitive market in which a firm operates, the level of leverage of the firm, as well as whether it has good or bad news regarding future earnings have an impact on whether a firm provides precise forecasts in its MD&A. Furthermore, the model suggests that firms providing precise forward-looking statements in the MD&A have lower forecast errors. Using 2SLS, the proposed model is tested using forward-looking statements regarding sales, earnings per share, cash flow, and capital expenditures extracted from the 2004 and 2005 annual reports of firms listed on the 2002 Fortune 500 list.

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