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Research on the use of financial statement information for forecasting profitability
Author(s) -
Yohn Teri Lombardi
Publication year - 2020
Publication title -
accounting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.645
H-Index - 49
eISSN - 1467-629X
pISSN - 0810-5391
DOI - 10.1111/acfi.12394
Subject(s) - profitability index , financial statement , financial statement analysis , statement (logic) , statement of changes in financial position , problem statement , financial analysis , financial market , accounting , value (mathematics) , business , finance , economics , accounting management , computer science , management science , accounting information system , political science , audit , law , machine learning
Research on the use of financial statement information for forecasting profitability has two objectives: (i) to generate improved forecasts of profitability and accurate estimates of firm value; and (ii) to identify market inefficiencies with respect to financial statement information. For these areas of research, this article describes the evolution, provides examples and shares implications of the research. It also discusses opportunities for future research. The article highlights that financial statement analysis research has slowly evolved and has received limited attention from academics. The article argues that there are vast opportunities for impactful research on fundamental analysis and market inefficiencies.