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Capital Market Consequences Of Expectations Management In The Postregulation Fair Disclosure Period

Sherry Fang Li

Accounting and Taxation2019article
ABDC C
Weight
0.26

What the paper says

This paper investigates the capital market consequences of expectations management in the postRegulation Fair Disclosure period. Results show that investors punish firms that deliberately issue pessimistic public guidance to dampen analysts’ expectations to a beatable level in the post-Regulation Fair Disclosure Era. I find that on average, the negative stock price effects caused by management’s pessimistic guidance dominate the positive stock price effects associated with the positive earnings surprises. Furthermore, both the short-term stock return over the combined guidance plus earnings announcement window and the long-term total period return are more negative for guidance firms than for firms that do not guide and thus miss financial analysts’ expectations

Cite this paper

@article{sherry2019,
  title        = {{Capital Market Consequences Of Expectations Management In The Postregulation Fair Disclosure Period}},
  author       = {Sherry Fang Li},
  journal      = {Accounting and Taxation},
  year         = {2019},
}

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Capital Market Consequences Of Expectations Management In The Postregulation Fair Disclosure Period

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Evidence weight

0.26

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.00 × 0.4 = 0.00
M · momentum0.20 × 0.15 = 0.03
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.