Macro information environment change and the quality of management earnings forecasts

被引：17

作者：

Baginski S.P. ^{[1
]}

Hassell J.M. ^{[2
]}

Kimbrough M.D. ^{[3
]}

机构：

[1] J.M. Tull School of Accounting, Terry College of Business, University of Georgia, Athens, GA 30602-6252

[2] Indiana University, Indianapolis, IN

[3] Harvard University, Boston, MA

来源：

Review of Quantitative Finance and Accounting | 2008年 / 31卷 / 3期

关键词：

Earnings quality; Information environment; Management forecasts;

D O I：

10.1007/s11156-007-0070-7

中图分类号：

学科分类号：

摘要：

The 1990s were characterized by substantial increases in the performance of and investor reliance on financial analysts. Because managers possess superior private information and issue forecasts to align investors' expectations with their own, we predict that managers increased the quality of their earnings forecasts during the 1990s in order to keep pace with the improved forward-looking information provided by financial analysts, upon which investors increasingly relied. Using a sample of 2,437 management earnings forecasts, we document an increase in management earnings forecast precision, management earnings forecast accuracy, and managers' tendency to explain earnings forecasts in 1993-1996 relative to 1983-1986. Given that these forecast characteristics are linked to greater informativeness and credibility, we also document that the information content of management earnings forecasts, as measured by the strength of share price responses to forecast news, increased in 1993-1996 relative to 1983-1986. As expected, the increased information content of management forecasts primarily occurred for firms covered by financial analysts. © 2007 Springer Science+Business Media, LLC.

引用

页码：311 / 330

页数：19

共 41 条

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