The rewards to meeting or beating earnings expectations

• 成果类型: Article
• 署名作者: Bartov, E; Givoly, D; Hayn, C
• 署名单位: University of California System; University of California Los Angeles; New York University; University of California System; University of California Irvine
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/S0165-4101(02)00045-9
• 发表日期: 2002
• 关键词: empirical power; management; specification; overreaction; DISCLOSURES

摘要

This paper finds that firms that meet or beat current analysts' earnings expectations (MBE) enjoy a higher return over the quarter than firms with similar quarterly earnings forecast errors that fail to meet these expectations. Further, such a premium to MBE, although somewhat smaller, exists in the cases where MBE is likely to have been achieved through earnings or expectations management. The findings also indicate that the premium to MBE is a leading indicator of future performance. This premium and its predictive ability are only marginally affected by whether the MBE is genuine or the result of earnings or expectations management. (C) 2002 Elsevier Science B.V. All rights reserved.