TY - JOUR
T1 - Country-level institutions and management earnings forecasts
AU - Li, Wenjing
AU - Ng, Jeff
AU - Tsang, Albert
AU - Urcan, Oktay
N1 - Funding Information:
American Accounting Association Annual Meeting; the 2015 Auckland Finance Meeting; and 1st Capital Market-Based Accounting Research Conference in Münster. We also gratefully acknowledge the financial support of the National Natural Science Foundation of China (Approval Nos. 71772078) and GDHVPS (2016).
Publisher Copyright:
© 2018, Academy of International Business.
PY - 2019/2/12
Y1 - 2019/2/12
N2 - Using a comprehensive sample hand-collected from the original texts of management earnings forecasts from 27 countries, we provide descriptive evidence on the country-level institutional determinants and economic consequences of forecast characteristics. Using principal component factors constructed from a number of country-level institutional variables, we find that forecast disaggregation, frequency, precision, and attribution vary significantly with the business and accounting environment of a country. We further document that better quality management forecasts are generally associated with stronger stock market reactions and higher investment efficiency. Together, our findings suggest that country-level institutions play a vital role in voluntary disclosure characteristics.
AB - Using a comprehensive sample hand-collected from the original texts of management earnings forecasts from 27 countries, we provide descriptive evidence on the country-level institutional determinants and economic consequences of forecast characteristics. Using principal component factors constructed from a number of country-level institutional variables, we find that forecast disaggregation, frequency, precision, and attribution vary significantly with the business and accounting environment of a country. We further document that better quality management forecasts are generally associated with stronger stock market reactions and higher investment efficiency. Together, our findings suggest that country-level institutions play a vital role in voluntary disclosure characteristics.
KW - investment efficiency
KW - management forecasts
KW - voluntary disclosure
UR - http://www.scopus.com/inward/record.url?scp=85056635762&partnerID=8YFLogxK
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U2 - 10.1057/s41267-018-0190-4
DO - 10.1057/s41267-018-0190-4
M3 - Article
AN - SCOPUS:85056635762
VL - 50
SP - 48
EP - 82
JO - Journal of International Business Studies
JF - Journal of International Business Studies
SN - 0047-2506
IS - 1
ER -