Capital market consequences of managers' voluntary disclosure styles

• 成果类型: Article
• 署名作者: Yang, Holly I.
• 署名单位: University of Pennsylvania
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2011.08.003
• 发表日期: 2012
• 关键词: institutional investors; Earnings forecast; UPPER ECHELONS; credibility; reputation

摘要

This paper studies the capital market consequences of managers establishing an individual forecasting style. Using a manager-firm matched panel dataset, I examine whether and when manager-specific credibility matters. If managers' forecasting styles affect their perceived credibility, then the stock price reaction to forecast news should increase with managers' prior forecasting accuracy. Consistent with this prediction. I find that the stock price reaction to management forecast news is stronger when information uncertainty is high and when the manager has a history of issuing more accurate forecasts, indicating that individual managers benefit from establishing a personal disclosure reputation. (C) 2011 Elsevier B.V. All rights reserved.