To blame or not to blame: Analysts' reactions to external explanations for poor financial performance

• 成果类型: Article
• 署名作者: Barton, J; Mercer, M
• 署名单位: Emory University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2005.04.006
• 发表日期: 2005
• 关键词: source credibility; INFORMATION; management; disclosure; cost; COMMUNICATION; ATTRIBUTIONS; liquidity; equity; belief

摘要

Managers often provide self-serving disclosures that blame poor financial performance on temporary external factors. Results of an experiment conducted with 124 financial analysts suggest that when analysts perceive such disclosures as plausible, they provide higher earnings forecasts and stock valuations than if the explanation had not been provided. However, we also show that these disclosures can backfire if analysts find them implausible. Specifically, implausible explanations that blame poor performance on temporary external factors lead analysts to provide lower earnings forecasts and assess a higher cost of capital than if the explanation had not been provided. (c) 2005 Elsevier B.V. All rights reserved.