Publication Type

Journal Article

Version

submittedVersion

Publication Date

12-2026

Abstract

We experimentally investigate how the presentation format of the extent to which a firm's earnings per share (EPS) diverges from analysts' EPS forecasts (i.e. deviation information) and a firm's EPS level affect the investment judgments of non-professional investors (referred to hereafter as “investors”). Our results suggest that investors' investment judgments are more positive when firms with low (high) EPS levels disclose deviation information in percentage (absolute) terms. Furthermore, when the percentage of forecast deviation is held constant, investment judgments are more positive when EPS levels are high versus low if the deviation information is expressed in absolute terms. By contrast, EPS level does not influence investment judgments when deviation information is communicated in percentage terms. Collectively, our results highlight how the effects of presentation format on investors' investment judgments depend on EPS levels. Our findings are insightful for managers on selecting presentation formats to communicate earnings information and for investors on interpreting performance metrics.

Keywords

EPS forecasts, analyst forecasts, investor judgments

Discipline

Accounting | Portfolio and Security Analysis

Research Areas

Corporate Reporting and Disclosure

Areas of Excellence

Digital transformation

Publication

Advances in Accounting

Volume

71

First Page

1

Last Page

10

ISSN

0882-6110

Identifier

10.1016/j.adiac.2026.100903

Publisher

Elsevier

Embargo Period

8-11-2026

Additional URL

https://doi.org/10.1016/j.adiac.2026.100903

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