An empirical analysis of voluntary management earnings forecasts

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Written in English

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Statementby Gregory B. Waymire.
LC ClassificationsMicrofilm 85/313 (H)
The Physical Object
Paginationv, 78 p.
Number of Pages78
ID Numbers
Open LibraryOL2581916M
LC Control Number85129965

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Management can not only choose whether to issue voluntary earnings forecasts or not, but also have the discretion on the precision of the earnings forecasts, which is an important feature of. Our findings highlight the need to distinguish between the varying types of earnings-related and quantitative forward-looking statements managers provide, and the need for researchers to be cautious in using standard point and range earnings forecasts (i.e., earnings-related and quantitative forward-looking statements) as summary measures of voluntary by: Management earnings forecasts aim to increase decision-related information for investors and reduce information asymmetry to reduce the cost of capital.

As sophisticated investors, analysts rely on both An empirical analysis of voluntary management earnings forecasts book and private information to make earnings forecasts, and thus they are more sensitive to the quality and quantity of by: 6.

The impact of voluntary management earnings forecasts on executive compensation contract 3 definition of King et al. () as mentioned in the introduction. Furthermore, earnings forecasts in this paper can refer to any type of forecast and is not limited to those focusing on EPS.

Finally, the words. The association between earnings forecast in IPO prospectuses and earnings management: An empirical analysis. Abstract. This paper examines the level of earnings management for large IPOs that provide earnings forecasts and those that do not provide forecasts in the IPO prospectus.

Cazier, Richard A. and Rego, Sonja O. and Tian, Xiaoli (Shaolee) and Wilson, Ryan J., The Consistency of Mandatory and Voluntary Management Earnings Forecasts and Implications for Analyst and Investor Information Processing (Ap ).

Kelley School of Author: Richard A. Cazier, Sonja O. Rego, Xiaoli Tian, Ryan J. Wilson. This paper investigates the effects of ten factors on bias in management earnings forecasts (MEF) using a sample of 28, forecasts announced by Japanese firms over the period Author: Koji Ota.

The Value Relevance of Management Forecasts and Their Impact on Analysts’ Forecasts: Empirical Evidence From Japan abac_ A major financial disclosure feature in Japan is that stock exchanges require firms to provide next year’s earnings forecasts. This study investi-gates the value relevance of Japanese management earnings.

Australian earnings management. Using a sample of 4, firm-year observations across nine Australia industries from towe find substantial corporate earnings management activity across several Australian industries. We document strong evidence of size and return on assets being primary determinants of earnings management in Size: KB.

We find that in firms with more effective board and audit committee structures, managers are more likely to make or update an earnings forecast, and their forecast is less likely to be precise, it is more accurate, and it elicits a more favorable market by:   We examine the relation between management earnings forecast disclosure policy and the cost of equity capital in a cross-section of 1, firms over a 4-year post-Regulation Fair Disclosure period ( through ).

We find evidence of a negative association between the quality of management earnings forecasting policy and cost of equity capital, and we document that the Cited by: Even if the earnings forecast is issued under the mandatory or voluntary disclosure rules, the precision and accuracy of management earnings forecasts will also decrease (H2 and H3).

This paper investigates the quarterly earnings forecast data of China’s Shanghai and Shenzhen A-share listed companies from to as a sample to study how Author: Jingyuan Zou. Empirical evidence on the consequences of voluntary disclosure on way to study the effects of earnings management.

and short-term earnings forecasts are beneficial in aiding investors. We find that in firms with more effective board and audit committee structures, managers are more likely to make or update an earnings forecast, and their forecast is less likely to be precise, it is more accurate, and it elicits a more favorable market response.

– This paper aims to make a comparison, different from existing literature solely focusing on voluntary earnings forecasts and ex post earnings surprise, between the effects of mandatory earnings surprise warnings and voluntary information disclosure issued by management teams on financial analysts in terms of the number of followings and the accuracy of earnings forecasts., – Cited by: 3.

Earnings Management: Theory and Research is a scholarly study of earnings management. The book is aimed for scholars in accounting, finance, economics, and law.

The authors address the following research questions: Why earnings are so important that firms feel compelled to manipulate them. What is earnings management. What set of circumstances will induce earnings management?5/5(1).

Shamsher Mohamad & Annuar Md Nassir & Tan Kung Kuing & Mohamed Ariff, "The Accuracy of Profit Forecasts of Malaysian IPOs," Capital Markets Review, Malaysian Finance Association, vol.

2(2), pages T.Y. Cheng & Michael Firth, "An Empirical Analysis of the Bias and Rationality of Profit Forecasts Published in New Issue Prospectuses," Journal of Business Finance & Accounting.

Management earnings forecasts for the upcoming period are provided in the condensed financial statements together with current financial results (sales, ordinary income, net income, earnings per share, and dividends per share).3 Thus, technically speaking, the provision of management earnings forecasts is voluntary without any legal by: 2.

The Association between Corporate Boards, Audit Committees, and Management Earnings Forecasts: An Empirical Analysis. Irene Karamanou and Nikos Vafeas. Journal of Accounting Research,vol.

43, issue 3, Abstract: We study how corporate boards and audit committees are associated with voluntary financial disclosure practices, proxied here by management earnings by: Their study substantially contributes to the extant research about the effect of voluntary disclosure on the cost of equity capital since management earnings forecasts is the type of disclosure most strongly influencing investors' payoff forecasting tasks (B&R, p.

An empirical analysis of firms that stop giving quarterly earnings guidance, Journal of Accounting and Economics, 51,(), ().

Crossref Carlos Corona and Ramandeep S. Randhawa, The Value of Confession: Admitting Mistakes to Build Reputation, SSRN Electronic Journal, /ssrn, Cited by:   The study is concerned with the usefulness of using audit data analytics of unregulated voluntary disclosures in reducing the auditing expectations gap.

It argues that the lack of credibility and assurance of the unstructured voluntary disclosures and other big data will impact the level of public users’ expectations towards the quality of these unregulated voluntary by: 1.

Vol. 18, No. 1, Spring, Published by: An Empirical Investigation of the Voluntary Disclosure of Corporate Earnings Forecasts. An Empirical Investigation of the Voluntary Disclosure of Corporate Earnings Forecasts (pp.

) Stephen H. Penman DOI: / INTRODUCTION. While the extant literature (e.g., Chan, Karceski & Lakonishok, ) yields overwhelming evidence on the over-optimism and inaccuracy of long-term earnings growth (LTG) forecasts, it remains silent on why analysts issue these forecasts, a question that becomes even more intriguing given the more voluntary nature of LTG forecasts compared with their near-term.

Book Rate-of-Return and Prediction of Earnings Changes: An Empirical Investigation () by R Freeman, J Ohlson, S Penman Venue: This study provides evidence on management forecasts in Japan, where managers are effectively required to provide sales and earnings forecasts at the beginning of each fiscal year and to update those forecasts.

“ Discretionary Management Earnings Forecast Disclosure: Antecedents and Outcomes Associated with Forecast Venue and Forecast Specificity Choices.” Journal of Accounting Research, 36 (), – Cited by: a sample of forty-six management forecasts forusing tests very similar to two of the three tests reported in this study.

Section 2 of this paper details the characteristics of the forecast data. Sections 3 and 4 develop the test procedures, and sections 5 and 6 present the empirical findings for the sample as a whole and for selected subsamples.

On the Association Between Voluntary Disclosure and Earnings Management. and with management forecast errors in particular. The empirical findings are consistent with the prediction that managers, fearing costly legal actions by shareholders and loss of reputation for credibility, use positive discretionary accruals to manage reported.

"Option Strategies for Earnings Announcements" builds on prior work by the same authors. Their previous book, Trading on Corporate Earnings News: Profiting from Targeted, Short-Term Options Positions, sought to evaluate the suitability of certain trades around earnings announcements based on Cited by: 1.

This paper regards earnings management area of research from an international point of view. In this respect an empirical analysis of the profile of contemporary published earnings management research was conducted using as sample, papers published in traditionally top 5 leading accounting journals.

Bamber, L. and Y. Cheon, Discretionary management earnings forecast disclosures: Antecedents and outcomes associated with forecast venue and forecast specificity choices.

Journal of Accounting Research 36(2): Banker, R., G. Potter and D. Srinivasan, An empirical investigation of an incentive. Brockman P, Cicon J (). The information content of management earnings forecasts: An analysis of hard versus soft information.

Journal of Financial Research 36(2) Crossref: Brown N, Deegan C (). The public disclosure of environmental performance information – a dual test of media agenda setting theory and legitimacy by: 1.

Based on the review of the relevant theory and empirical research of listed tourism companies’ voluntary information disclosure and performance. This paper selects 11 thematic tourism listed companies in Shanghai and Shenzhen Stock Exchange as the research samples, and applies empirical analysis to discuss the relationship between voluntary information disclosure and corporate Author: Liqing Lin.

Free Online Library: Lockup and voluntary earnings forecast disclosure in IPOs.(initial public offerings, Report) by "Financial Management"; Banking, finance and accounting Business Disclosure (Securities law) Comparative analysis Financial disclosure Influence Going public (Securities) Finance Initial public offerings Stock price forecasting Analysis.

Forward-Looking Information Disclosure and Corporate Governance: Empirical Evidence from Year Listed Firms in Ghana ‘The Voluntary Inclusion of Forecast in the MD&A Section of Annual Reports Audit Committees, and Management Earnings Forecasts: An Empirical Analysis.

Journal of Accounting Research, 43 (3) Author: Ben K. Agyei-Mensah. Specifically, the study investigates whether the accuracy of analysts' earnings forecasts is associated with the extent of managers' voluntary disclosure of strategic operating information (SOI).

The empirical results show that managers of firms with greater analysts' forecast errors are more likely to voluntarily disclose strategic operating. Management earnings forecasts expressed as a range have become the most common form of quantitative management guidance.

Traditionally, the proxy for the information conveyed by these forecasts - the forecast news - is calculated as the difference between a pre-forecast earnings expectation and the midpoint of the foretasted range.

Abstract This study examines whether investors overreact to bad news during good times and underreact to bad news during bad times. We examine investors' reaction to bad news during economic cycles for a sample of U.S.

firms issuing voluntary disclosures of profit warnings prior to a quarterly earnings per share announcement during the to period. Eman, () investigated the impact of earnings management on the value relevance of both earnings and book values.

Earnings management is defined as a combination of the real earnings management and earnings management of the accruals. Results reveal that the earnings and the book values are related to the share prices of.

The Effect Of Voluntary Spin-Offs On Stock Prices: The Anergy Hypothesis, Advances in Financial Planning and Forecasting,v1(1), Lintner, J.,The Valuation of Risk Assets and the Selection of Risky Investments in Stock Portfolios and Capital Budgets, Review of Economics and Statistics.

We document how voluntary disclosure of management earnings forecasts (MFs) affects the asymmetric timeliness of earnings measured using the Basu () model. The rationale is that MFs affect the extent to which prices lead earnings, which in turn affects the asymmetric timeliness coefficient of the Basu () model.

Voluntary Disclosure of Management Earnings Forecasts in IPO Prospectuses Voluntary Disclosure of Management Earnings Forecasts in IPO Prospectuses Jog, Vijay; McConomy, Bruce J.

1. Introduction Over the past decade there has been much international research focusing on asymmetric information and mechanisms for its resolution in the context of initial .Book rate-of-return and prediction of earnings changes: An empirical investigation RN Freeman, JA Ohlson, SH Penman Journal of accounting research,

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