Do Management Earnings Forecasts Incorporate Information in Earnings’ Components? Evidence from the Tunisian Context
Fatma Boubakri

Abstract
The aim of this paper is to explain the management earnings forecast errors of Tunisian listed firms and examine whether the management earnings forecasts reflect fully the implications of the two components accruals and cash flows of current earnings for the future earnings. Using a sample of Tunisian non-financial firms over the period 2009-2018, the Hausman test result advocates choosing the fixed effects models to determine which information from mandatory disclosures, can explain the management earnings forecast errors in listed Tunisian firms. Our results indicate a negative and significant association between management earnings forecast errors and cash flows component but the effect of the accruals component on management forecast errors is not statistically significant. These results show that managers estimate correctly the accruals persistence but underestimate the cash flows persistence.

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