University of Twente Student Theses

Login

Forward-looking information in annual reports : a study into its realisation

Engbers, E.M.H. (2016) Forward-looking information in annual reports : a study into its realisation.

[img] PDF
773kB
Abstract:In today’s dynamic business environment forward-looking corporate information forms a relevant source of information to investors. However, no guarantee can be given that the this information will match with future reality. This research is concerned with monitoring forward-looking information in annual reports, by comparing this information with backward-looking information on its realisation provided in later annual reports. Forward-looking information is retrieved from selected sections of the annual reports of 2004 until 2013 from two case companies. It can be concluded that realisation could not be determined for all forward-looking information, as some information appeared to be not specific enough to be able to monitor it or the needed backward-looking information was found to be lacking in later annual reports. For the forward-looking information units for which realisation could be determined it was found that, although for eighteen out of twenty firm-years these were mostly found to be matching with subsequent reality, every firm-year included forward-looking information that appeared to be mismatching with backward-looking information on its realisation. This might indicate the difficulty for firms to exactly predict and plan their future. Investors must be aware of the fact that certainty regarding the realisation of forward-looking information is non-existing.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:https://purl.utwente.nl/essays/71127
Export this item as:BibTeX
EndNote
HTML Citation
Reference Manager

 

Repository Staff Only: item control page