Consistency in meeting or beating earnings expectations and management earnings forecasts

• 成果类型: Article
• 署名作者: Kross, William J.; Ro, Byung T.; Suk, Inho
• 署名单位: Purdue University System; Purdue University; State University of New York (SUNY) System; University at Buffalo, SUNY; Yonsei University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2010.06.004
• 发表日期: 2011
• 关键词: regulation fair disclosure; ANALYST; INFORMATION; MARKET; guidance; cost; determinants; environment; rewards; matter

摘要

This paper provides evidence that firms that have consistently met or beaten analysts' earnings expectations (MBE) provide more frequent bad news management forecasts than firms with no established string of MBE, particularly when existing analyst forecasts are optimistic. This suggests that firms with a consistent MBE record are more likely to guide analysts' expectations downward to avoid breaking the consistency. Subsequent analyst forecast revisions following bad news management forecasts issued by these firms are dampened, implying that analysts suspect that these forecasts may be opportunistic. The relation between management forecasts and MBE consistency is stronger after Regulation FD. (C) 2010 Elsevier B.V. All rights reserved.