The Use of Strategic Performance Variables as Leading Indicators in Financial Analysts' Forecasts

Journal of Financial Statement Analysis, Summer 1997

Posted: 19 Jan 1998

See all articles by Stephen J. Dempsey

Stephen J. Dempsey

University of Vermont - School of Business Administration

James F. Gatti

University of Vermont - School of Business Administration

D. Jacque Grinnell

University of Vermont (Deceased)

William L. Cats-Baril

University of Vermont

Abstract

An emerging view among managers and academicians argues for an expanded reporting system to provide more comprehensive information about organizational performance, including internal strategic performance variables, although there is little systematically gathered evidence on the views of the analyst community in this regard. Reported here are the results of a survey of 420 practitioners regarding the frequency of use, predictive value, and ease of acquisition of a variety of financial and non-financial performance measures. The patterns of use that emerge paint a picture in which analysts go well beyond the traditional financial measures and use a broad range of strategic leading indicators to assess long-term organizational success.

JEL Classification: M41, M45

Suggested Citation

Dempsey, Stephen J. and Gatti, James F. and Grinnell, D. Jacque and Cats-Baril, William L., The Use of Strategic Performance Variables as Leading Indicators in Financial Analysts' Forecasts. Journal of Financial Statement Analysis, Summer 1997, Available at SSRN: https://ssrn.com/abstract=54167

Stephen J. Dempsey (Contact Author)

University of Vermont - School of Business Administration ( email )

Burlington, VT 05405
United States
802-656-8322 (Phone)
802-656-8279 (Fax)

James F. Gatti

University of Vermont - School of Business Administration ( email )

Burlington, VT 05405
United States
802-656-8298 (Phone)
802-656-8279 (Fax)

D. Jacque Grinnell

University of Vermont (Deceased)

William L. Cats-Baril

University of Vermont ( email )

212 Kalkin Hall
Burlington, VT 05405
United States
802-656-0510 (Phone)

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