Accounting Papers
Document Type
Journal Article
Date of this Version
2012
Publication Source
Journal of Accounting and Economics
Volume
53
Issue
1-2
Start Page
167
Last Page
184
DOI
10.1016/j.jacceco.2011.08.003
Abstract
This paper studies the capital market consequences of managers establishing an individual forecasting style. Using a manager-firm matched panel dataset, I examine whether and when manager-specific credibility matters. If managers' forecasting styles affect their perceived credibility, then the stock price reaction to forecast news should increase with managers' prior forecasting accuracy. Consistent with this prediction, I find that the stock price reaction to management forecast news is stronger when information uncertainty is high and when the manager has a history of issuing more accurate forecasts, indicating that individual managers benefit from establishing a personal disclosure reputation.
Copyright/Permission Statement
© 2012. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/
Keywords
management credibility, earnings guidance, management forecasts, management styles
Recommended Citation
Yang, H. I. (2012). Capital Market Consequences of Managers' Voluntary Disclosure Styles. Journal of Accounting and Economics, 53 (1-2), 167-184. http://dx.doi.org/10.1016/j.jacceco.2011.08.003
Date Posted: 27 November 2017
This document has been peer reviewed.