Investor Reaction to Disclosure of Past Performance and Future Plans

• 成果类型: Article
• 署名作者: Emett, Scott A.
• 署名单位: Arizona State University; Arizona State University-Tempe
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr-52343
• 发表日期: 2019
• 页码: 165-188
• 关键词: information-content; POSITIVE EMOTIONS; ceo overconfidence; earnings guidance; Attribution bias; CONFERENCE CALLS; induced optimism; self; management; success

摘要

I examine how and why current-period performance shapes investors' evaluations of future-oriented disclosures. Three experiments provide evidence that a firm's current-period performance shapes investors' beliefs about the appropriateness of managerial optimism, which, in turn, affects investors' evaluation of firms that focus on either challenges or opportunities in future-oriented disclosures. When a firm is performing poorly, investors believe that managers can best achieve success by being optimistic about the future and, therefore, invest more when the firm focuses on opportunities rather than challenges in future-oriented disclosures. When a firm is performing well, on the other hand, investors believe that managers can best achieve success by being realistic about the future and, therefore, invest more when the firm focuses on challenges rather than opportunities.