Gestion des attentes et objectifs susceptibles d'être dépassés: La réaction des analystes aux indices explicites de résultats

Translated title of the contribution: Expectations management and beatable targets: How do analysts react to explicit earnings guidance?

Julie Cotter, Irem Tuna, Peter D. Wysocki

Research output: Contribution to journalReview article

169 Scopus citations

Abstract

This study investigates security analysts' reactions to public management guidance and assesses whether managers successfully guide analysts toward beatable earnings targets. We use a panel data set between 1995 and 2001 to examine the fiscal-quarter-specific determinants of management guidance and the timing, extent, and outcomes of analysts' reactions to this guidance. We find that management guidance is more likely when analysts' initial forecasts are optimistic, and, after controlling for the level of this optimism, when analysts' forecast dispersion is low. Analysts quickly react to management guidance and are more likely to issue final meetable or beatable earnings targets when management provides public guidance. Our evidence suggests that public management guidance plays an important role in leading analysts toward achievable earnings targets.

Translated title of the contributionExpectations management and beatable targets: How do analysts react to explicit earnings guidance?
Original languageGerman
Pages (from-to)593-624
Number of pages32
JournalContemporary Accounting Research
Volume23
Issue number3
DOIs
StatePublished - Sep 1 2006

Keywords

  • Analysts
  • Earnings guidance
  • Expectations management
  • Management earnings forecasts

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics

Fingerprint Dive into the research topics of 'Expectations management and beatable targets: How do analysts react to explicit earnings guidance?'. Together they form a unique fingerprint.

  • Cite this