Top Management Team Functional Diversity and Management Forecast Accuracy

I examine whether TMT between-member and within-member functional diversity affect management earnings forecast accuracy. Between-member refers to the heterogeneity of experts on a aggregate breadth members. find that both types are positively associated with Further cross-sectional analyses show these positive associations significant only when firms face greater information uncertainty, TMTs more decentralized, members have longer joint team tenure. These findings consistent information-processing perspective can facilitate processing sharing thus improve This study contributes literature by shedding light how various backgrounds work together in shaping financial disclosure quality.