Country-level institutions and management earnings forecasts

Wenjing Li, Jeff Ng, Albert Tsang, Oktay Urcan

Research output: Contribution to journalArticlepeer-review


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.

Original languageEnglish (US)
Pages (from-to)48-82
Number of pages35
JournalJournal of International Business Studies
Issue number1
StatePublished - Feb 12 2019


  • investment efficiency
  • management forecasts
  • voluntary disclosure

ASJC Scopus subject areas

  • Business and International Management
  • General Business, Management and Accounting
  • Economics and Econometrics
  • Strategy and Management
  • Management of Technology and Innovation


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