Abstract
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 language | English (US) |
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Pages (from-to) | 48-82 |
Number of pages | 35 |
Journal | Journal of International Business Studies |
Volume | 50 |
Issue number | 1 |
DOIs | |
State | Published - Feb 12 2019 |
Keywords
- 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