The fleeting effects of disclosure forthcomingness on management's reporting credibility

• 成果类型: Article
• 署名作者: Mercer, M
• 署名单位: Emory University
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr.2005.80.2.723
• 发表日期: 2005
• 页码: 723-744
• 关键词: analysts reactions; numerical data; earnings; COMMUNICATION; strategies; judgments

摘要

This study provides a theoretical framework and experimental evidence on how managers' disclosure decisions affect their credibility with investors. I find that in the short-term, more forthcoming disclosure has a positive effect on management's reporting credibility, especially when management is forthcoming about negative news. However, these short-term credibility effects do not persist over time. In the long-term, managers who report positive earnings news are rated as having higher reporting credibility than managers who report negative earnings news, regardless of their previous disclosure decisions.