Analysts refer to nonfinancial measures in their company reports (Previts et al. 1994) and pay considerable attention to these measures in making their decisions (Breton and Taffler 2001;Demsey et al. 1997; Low and Siesfield 1998). Nonfinancial measures are useful because they ‘‘both reflect and affect financial value’’ (E&Y 1997, 5), help link managements’ actions to company’s financial results (Epstein and Palepu 1999) and future earnings estimates (Rajgopalan et al. 2003),influence firm’s fundamental value (Amir and Lev 1996; Dhaliwal et al. 2010), and are positively associated with analysts’ forecast accuracy