Management Earnings Forecasts and Book-Tax Differences
نویسندگان
چکیده
منابع مشابه
Management Earnings Forecasts and Subsequent Price Formation
This paper examines price formation subsequent to management forecasts of quarterly earnings. Consistent with prior studies, we find that the short-term market reaction to bad news forecasts is much larger than that to good news forecasts. Examining returns in the post-guidance period, we find a significant upward drift for both good and bad news forecasts. The asymmetry in the initial market r...
متن کاملBook-Tax Conformity and the Information Content of Earnings
We examine whether the information content of earnings is inversely related to the degree of conformity between financial accounting income and taxable income. Our inquiry exploits a natural experiment first examined by Guenther et al. (1997) in which a set of U.S. firms were forced to increase their book-tax conformity as a result of a change in the tax law. We find evidence consistent with th...
متن کاملSmooth Earnings and the Credibility of Management Forecasts
This paper examines the relation between smooth past earnings performance and the credibility of voluntary management earnings forecasts. Specifically, using strings of increasing earnings per share as our measure of past performance, we demonstrate that both analyst forecast revisions and stock price reactions around management earnings forecasts are more pronounced when the firm has posted a ...
متن کاملManagement Earnings Forecasts and Value of Analyst Forecast Revisions
Prior studies evaluate the relative importance of the sources of value that financial analysts bring to the market based on the price impact of forecast revisions over the event time. We find that management earnings forecasts influence the timing and precision of analyst forecasts. More importantly, evidence suggests that prior studies’ finding of weaker (stronger) stock-price responses to for...
متن کاملMoral Hazard, Firms’ Internal Governance and Management Earnings Forecasts
This paper investigates the role of management earnings forecasts in mitigating information asymmetry between investors and managers relating to moral hazard, and explains how earnings guidance can facilitate monitoring. I demonstrate that firms that are more susceptible to moral hazard problems and more difficult to monitor are also more likely to issue annual earnings forecasts and they do so...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: International Journal of Economics and Finance
سال: 2015
ISSN: 1916-9728,1916-971X
DOI: 10.5539/ijef.v7n3p1