Intellectual capital information

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1. Critically discuss the role of non-financial information – e.g., intellectual capital information – in analysts’ forecasts, valuation and investment recommendation decisions, and analysts’ formation of a view about the companies they cover. (Students are expected to demonstrate familiarity with relevant literature.)

2. Discuss the following statement made by a hedge fund manager: “It is not worth the time to develop detailed fundamentals-based forecasts of earnings and free cash flows. It is quicker, easier and as accurate just to use some random walk models to forecast earnings and free cash flows.”

Reference no: EM132055954

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