Once Bitten, Twice Shy: The Relation between Outcomes of Earnings Guidance and Management Guidance Strategy

• 成果类型: Article
• 署名作者: Feng, Mei; Koch, Adam S.
• 署名单位: Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh; University of Virginia
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr.2010.85.6.1951
• 发表日期: 2010
• 页码: 1951-1984
• 关键词: discretionary disclosure; Analyst forecasts; INFORMATION; cost; determinants; association

摘要

We examine how management quarterly guidance strategy is affected by various outcomes from previously issued guidance. We find that managers are less likely to provide quarterly earnings guidance for a given year when past management forecasts have been overly optimistic, when past forecasts were unsuccessful at influencing analysts' expectations, when past forecasts failed to reduce information asymmetry, and when past forecasts resulted in earnings disappointments. For firms that continue to give guidance, adverse prior outcomes also affect the precision of future guidance and the number of quarters within a year for which they give guidance.