Asymmetric effects of regulation FD on management earnings forecasts
Heflin, Frank
Asymmetric effects of regulation FD on management earnings forecasts / Frank Heflin, William J. Kross & Inho Suk . -- Páginas 119 a la 152
Reseña : We document that the effect of Regulation Fair Disclosure (FD) on public management earnings forecasts (MFs) is asymmetric. Our results suggest that FD increased managers' use of MFs as a downward-guidance mechanism to help achieve meeting or beating earnings expectations. This effect is more pronounced when existing analyst forecasts are optimistic and when firms had selective disclosure policies pre-FD. We also find that the increased use of MFs as downward guidance leads to post-FD reductions in MF quality (accuracy and informativeness) for the downward guiding MFs that are most likely meet/beat motivated, while quality improves for upward-guiding MFs. Finally, our evidence suggests that results from prior research about FD-induced changes in information environment variables, such as analyst forecast quality and investor trading activities, depend on whether the firm issues MFs and whether those MFs are downward guiding..
Contabilidad--Publicaciones seriadas
Valores--Legislación--Estados Unidos--Publicaciones seriadas
Pronósticos de los negocios--Publicaciones seriadas
Kross, William J. ; Suk, Inho ;
Asymmetric effects of regulation FD on management earnings forecasts / Frank Heflin, William J. Kross & Inho Suk . -- Páginas 119 a la 152
Reseña : We document that the effect of Regulation Fair Disclosure (FD) on public management earnings forecasts (MFs) is asymmetric. Our results suggest that FD increased managers' use of MFs as a downward-guidance mechanism to help achieve meeting or beating earnings expectations. This effect is more pronounced when existing analyst forecasts are optimistic and when firms had selective disclosure policies pre-FD. We also find that the increased use of MFs as downward guidance leads to post-FD reductions in MF quality (accuracy and informativeness) for the downward guiding MFs that are most likely meet/beat motivated, while quality improves for upward-guiding MFs. Finally, our evidence suggests that results from prior research about FD-induced changes in information environment variables, such as analyst forecast quality and investor trading activities, depend on whether the firm issues MFs and whether those MFs are downward guiding..
Contabilidad--Publicaciones seriadas
Valores--Legislación--Estados Unidos--Publicaciones seriadas
Pronósticos de los negocios--Publicaciones seriadas
Kross, William J. ; Suk, Inho ;