Journal ArticleDOI
An Empirical Test of the Signaling Effect of Management's Earnings Forecasts: A Decomposition of the Earnings Surprise and Forecast Surprise Effects:
TLDR
In this paper, the authors decompose the cross-sectional variability in stock market reactions to management earnings forecasts into the portions attributable to the forecast surprise and the earnings surprise, and find that the market reaction is more associated with forecast surprise than with earnings surprise.Abstract:
When corporate management issues an earnings forecast there are potentially two surprises. One potential surprise is that a forecast was issued and the other is the surprise in the earnings forecast. Accordingly, the observed stock market reaction to management earnings forecasts may be due to one or the other, or both. This study decomposes the cross-sectional variability in stock market reactions to management earnings forecasts into the portions attributable to the forecast surprise and the earnings surprise. The results indicate that the market's reaction is a function of both the earnings surprise and the forecast surprise. However, the market reaction is more associated with forecast surprise than with the earnings surprise. This suggests that results in previous studies on the market reactions to management earnings forecasts may need to be reconsidered.read more
Citations
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Journal ArticleDOI
The determinants of Internet financial reporting
TL;DR: In this paper, the authors studied the impact of the environment of disclosure on the presentation and content of IFR and found that the presentation aspect was more associated with identified determinants than the content of the IFR, which suggests that Internet presentation technologies were more related to the determinants rather than the contents of the reports on the company Web sites.
Journal ArticleDOI
Bundled Forecasts in Empirical Accounting Research
TL;DR: This paper examined the econometric problems associated with measuring bundled forecast news and provided evidence that the measurement error in the traditional calculation of forecast news is material and is systematically associated with variables frequently studied in forecast-related research.
Journal ArticleDOI
Digital reporting in Eastern Europe: An empirical study
Enrique Bonsón,Tomás Escobar +1 more
TL;DR: Results show a statistically significant relationship between the extent of information disclosure on the Internet and a) company size, b) the company's activity being in the financial sector, and c) the fact of employing one of the world's Big Four accountancy firms for auditing the firm's books.
Journal ArticleDOI
Bundled forecasts in empirical accounting research
TL;DR: This article examined the econometric problems associated with measuring bundled forecast news and provided evidence that the measurement error in the traditional calculation of forecast news is material and is systematically associated with variables frequently studied in forecast-related research.
References
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Book
Limited-Dependent and Qualitative Variables in Econometrics
TL;DR: In this article, the authors present a survey of the use of truncated distributions in the context of unions and wages, and some results on truncated distribution Bibliography Index and references therein.
Book
Introduction to Econometrics
TL;DR: In this article, the authors discuss diagnostic checking, model selection, and specification testing for Econometrics, including Diagnostic Checking, Model Selection, and Specification Testing, as well as a discussion of nonlinear regression, models of expectations, and nonnormality errors in Variables.