Country-level institutions and management earnings forecasts

• 成果类型: Article
• 署名作者: Li, Wenjing; Ng, Jeff; Tsang, Albert; Urcan, Oktay
• 署名单位: Jinan University; Chinese University of Hong Kong; York University - Canada; Hong Kong Baptist University; University of Illinois System; University of Illinois Urbana-Champaign
• 刊物名称: JOURNAL OF INTERNATIONAL BUSINESS STUDIES
• ISSN/ISSBN: 0047-2506
• DOI: 10.1057/s41267-018-0190-4
• 发表日期: 2019
• 页码: 48-82
• 关键词: voluntary disclosure; management forecasts; investment efficiency

摘要

Using a comprehensive sample hand-collected from the original texts of management earnings forecasts from 27 countries, we provide descriptive evidence on the country-level institutional determinants and economic consequences of forecast characteristics. Using principal component factors constructed from a number of country-level institutional variables, we find that forecast disaggregation, frequency, precision, and attribution vary significantly with the business and accounting environment of a country. We further document that better quality management forecasts are generally associated with stronger stock market reactions and higher investment efficiency. Together, our findings suggest that country-level institutions play a vital role in voluntary disclosure characteristics.