<heading id="h1" level="1" implicit="yes" format="display">ABSTRACT</heading>An important problem facing managers is how to enhance the credibility, or believability, of their earnings forecasts. In this paper, we experimentally test whether a characteristic of a management earnings forecast-namely, whether it is disaggregated-can affect its credibility. We also...

<heading id="h1" level="1" implicit="yes" format="display">ABSTRACT</heading>Archival research shows that the market reacts to earnings trend as well as to earnings performance relative to analysts' forecasts (i.e., benchmark performance). We conduct four experiments to investigate "how" and "why" investors react to these two measures when "both" are...