Previous literature studying analysts’ earnings forecasts examines their properties without considering firms’ response to analysts’ forecasts. This study improves upon previous research by considering firms’ earnings management with respect to analysts’ forecasts. I hypothesize that analysts understand firms’ earnings management practices, and incorporate firms’ expected behavior into their fo...

The Logic of Approximate Entailment (LAE) is a graded counterpart of classical propositional calculus, where conclusions that are only approximately correct can be drawn. This is achieved by equipping the underlying set of possible worlds with a similarity relation. When using this logic in applications, however, a disadvantage must be accepted; namely, in LAE it is not possible to combine conc...

In this paper we present a new type of binary classifier defined on the unit cube. This classifier combines some of the aspects of the standard methods that have been used in the logical analysis of data (LAD) and geometric classifiers, with a nearest-neighbor paradigm. We assess the predictive performance of the new classifier in learning from a sample, obtaining generalization error bounds th...

Scope and PurposeÐLeast absolute value (LAV) regression methods have been widely applied in estimating regression equations. However, most of the current LAV methods are based on the original goal program developed over four decades. On the basis of a modi®ed goal program, this study reformulates the LAV problem using a markedly lower number of deviational variables than used in the current LAV...

The paper describes a new, logic-based methodology for analyzing observations. The key features of the Logical Analysis of Data (LAD) are the discovery of minimal sets of features necessary for explaining all observations, and the detection of hidden patterns in the data capable of distinguishing observations describing \positive" outcome events from \negative" outcome events. Combinations of s...

Rodent models of myocardial infarction (MI) have been extensively used in biomedical research towards the implementation of novel regenerative therapies. Permanent ligation of the left anterior descending (LAD) coronary artery is a commonly used method for inducing MI both in rat and mouse. Post-mortem evaluation of the heart, particularly the MI extension assessment performed on histological s...

Exogeneity testing is studied in the presence of outliers in response variables. Robust tests based on least absolute deviations (LAD) and M estimators are proposed and illustrated with an application to Mroz (1987) data. Our simulation results show that the proposed robust tests outperform the traditional Hausman test for exogeneity in terms of empirical power in the presence of outliers in re...

ÐThe paper describes a new, logic-based methodology for analyzing observations. The key features of the Logical Analysis of Data (LAD) are the discovery of minimal sets of features necessary for explaining all observations and the detection of hidden patterns in the data capable of distinguishing observations describing apositiveo outcome events from anegativeo outcome events. Combinations of s...

A number of previous studies have shown that a combination of forecasts typically outperforms any component forecast. Service managers may wish to use forecast combination to improve forecast accuracy in predicting retail sales. In this study, revenue data from an actual service company is used to generate and test a least absolute value (LAV) regression model for forecast combination. The LAV ...

A simple approach was developed to predict corn yields using the MoDerate Resolution Imaging Spectroradiometer (MODIS) data product from two geographically separate major corn crop production regions: Illinois, USA and Heilongjiang, China. The MOD09A1 data, which are eight-day interval surface reflectance data, were obtained from day of the year (DOY) 89 to 337 to calculate the leaf area index ...