Publication Type
Journal Article
Version
acceptedVersion
Publication Date
2-2012
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.
Keywords
Management credibility, Earnings guidance, Management forecasts, Management styles
Discipline
Accounting | Corporate Finance
Research Areas
Corporate Reporting and Disclosure
Publication
Journal of Accounting and Economics
Volume
53
Issue
1-2
First Page
167
Last Page
184
ISSN
0165-4101
Identifier
10.1016/j.jacceco.2011.08.003
Publisher
Elsevier
Citation
YANG, Holly I..
Capital Market Consequences of Managers' Voluntary Disclosure Styles. (2012). Journal of Accounting and Economics. 53, (1-2), 167-184.
Available at: https://ink.library.smu.edu.sg/soa_research/1159
Copyright Owner and License
Authors
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Additional URL
https://doi.org/10.1016/j.jacceco.2011.08.003