Journal ArticleDOI
The Role of Supplementary Statements with Management Earnings Forecasts
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This article investigated managers' decisions to supplement their firms' management earnings forecasts with verifiable forward-looking statements and found that managers provide soft talk disclosures with similar frequency for good and bad news forecasts but are more likely to supplement good news forecasts with Verifiable Forward-looking Statements.Abstract:
We investigate managers' decisions to supplement their firms' management earnings forecasts We classify these supplementary disclosures as qualitative “soft talk” disclosures or verifiable forward-looking statements We find that managers provide soft talk disclosures with similar frequency for good and bad news forecasts but are more likely to supplement good news forecasts with verifiable forward-looking statements We examine the market response to these forecasts and find that bad news earnings forecasts are always informative but that good news forecasts are informative only when supplemented by verifiable forward-looking statements, supporting our argument that these statements bolster the credibility of good news forecastsread more
Citations
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Journal ArticleDOI
Revisiting the Relation Between Environmental Performance and Environmental Disclosure: An Empirical Analysis
TL;DR: In this article, the relationship between corporate environmental performance and environmental disclosure was investigated by testing economics-based theories of voluntary disclosure using a more rigorous research design, and they found a positive association between environmental performance with the extent of discretionary environmental disclosures.
Journal ArticleDOI
Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis
TL;DR: In this paper, a content analysis index based on the Global Reporting Initiative sustainability reporting guidelines was developed to assess the extent of discretionary disclosures in environmental and social responsibility reports. But, the results showed that socio-political theories explain patterns in the data (legitimization) that cannot be explained by economics disclosure theories.
Journal ArticleDOI
The Financial Reporting Environment: Review of the Recent Literature
TL;DR: The authors provide a framework for analyzing the three main decisions that shape the corporate information environment in a capital markets setting: (1) managers' voluntary reporting and disclosure decisions, (2) reporting and disclosures mandated by regulators, and (3) reporting decisions by third-party intermediaries.
Journal ArticleDOI
Annual Report Readability, Current Earnings, and Earnings Persistence
TL;DR: This article examined the relationship between annual report readability and firm performance and earnings persistence and found that firms with lower earnings are harder to read (i.e., they have higher Fog and are longer) and positive earnings of firms with annual reports that are easier to read are more persistent.
Journal ArticleDOI
The financial reporting environment: Review of the recent literature
TL;DR: The authors review current research on the three main decisions that shape the corporate information environment in capital market settings: (1) managers' voluntary disclosure decisions, (2) disclosures mandated by regulators, and (3) reporting decisions by analysts.
References
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Journal ArticleDOI
The psychology of attitudes.
Alice H. Eagly,Shelly Chaiken +1 more
TL;DR: The only truly comprehensive advanced level textbook designed for courses in the pscyhology of attitudes and related studies in attitude measurement, social cognition is as mentioned in this paper, which contains a comprehensive coverage of classic and modern research and theory.
Journal ArticleDOI
The conservatism principle and the asymmetric timeliness of earnings1
TL;DR: In this paper, the authors interpret conservatism as resulting in earnings reflecting "bad news" more quickly than "good news" and find that negative earnings changes are less persistent than positive earnings changes.
Book
The information content of annual earnings announcements
TL;DR: The authors empirically examined the extent to which common stock investors perceive earnings to possess informational value and found that the earnings term was the most important explanatory variable in the valuation equation, and that the relationship is a necessary condition for earnings to have information content.
Journal ArticleDOI
Why firms voluntarily disclose bad news
TL;DR: In this paper, the authors examined the earnings-related disclosures made by a random sample of 93 NASDAQ firms during 1981-90 and found that good news disclosures tend to be point or range estimates of annual earnings-per-share (EPS), while bad news disclosures tended to be qualitative statements about the current quarter's earnings; the (unconditional) stock price response to bad
Journal ArticleDOI
Corporate forecasts of earnings per share and stock-price behavior - empirical tests
TL;DR: In this paper, the authors examined the common stock price behavior which accompanied the voluntary disclosure of 336 forecasts of annual earnings per share during the years 1963-67 and found that these forecast disclosures were accompanied by significant price adjustments, from which the inference may be drawn that either the data presented in a management forecast, the act of voluntary disclosure, or both, convey information to investors.
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