Cotter, Julie and Tuna, Irem and Wysocki, Peter D. (2006) Expectations management and beatable targets: how do analysts react to explicit earnings guidance? Contemporary Accounting Research, 23 (3). pp. 593-624. ISSN 0823-9150
![]()
|
PDF (Copyright restriction notice)
Cotter_Tuna_Wysocki_Publ._copyright_restrictions_(Journal_article).pdf Download (26kB) |
Abstract
This study investigates security analysts' reactions to public management guidance and assesses whether managers successfully guide analysts toward beatable earnings targets. We use a panel dataset between 1995 and 2001 to examine the fiscal-quarter-specific determinants of management guidance and the timing, extent, and outcomes of analysts' reactions to this guidance. We find that management guidance is more likely when analysts’ initial forecasts are optimistic, and, after controlling for the level of this optimism, when analysts’ forecast dispersion is low. Analysts quickly react to management guidance and they are more likely to issue final meetable or beatable earnings targets when management provides public guidance. Our evidence suggests that public management guidance plays an important role in leading analysts toward achievable earnings targets.
![]() |
Statistics for this ePrint Item |
Item Type: | Article (Commonwealth Reporting Category C) |
---|---|
Refereed: | Yes |
Item Status: | Live Archive |
Additional Information: | Permanent restricted access to paper due to publisher copyright restrictions. |
Faculty/School / Institute/Centre: | Historic - Faculty of Business - Department of Accounting (Up to 31 Mar 2007) |
Faculty/School / Institute/Centre: | Historic - Faculty of Business - Department of Accounting (Up to 31 Mar 2007) |
Date Deposited: | 11 Oct 2007 01:07 |
Last Modified: | 02 Jul 2013 22:44 |
Uncontrolled Keywords: | analysts; earnings guidance; expectations management; management earnings forecasts |
Fields of Research (2008): | 15 Commerce, Management, Tourism and Services > 1501 Accounting, Auditing and Accountability > 150103 Financial Accounting 14 Economics > 1402 Applied Economics > 140209 Industry Economics and Industrial Organisation 14 Economics > 1403 Econometrics > 140303 Economic Models and Forecasting |
Socio-Economic Objectives (2008): | B Economic Development > 91 Economic Framework > 9102 Microeconomics > 910208 Micro Labour Market Issues |
Identification Number or DOI: | https://doi.org/10.1506/FJ4D-04UN-68T7-R8CA |
URI: | http://eprints.usq.edu.au/id/eprint/2459 |
Actions (login required)
![]() |
Archive Repository Staff Only |