We examine whether quarterly earnings guidance induces real earnings management. Quarterly guidance may cause myopia and inefficient decision-making, as managers become overly concerned with setting and beating short-term earnings targets. We focus on guidance driven by plausibly exogenous...

We study the links between conditional conservatism and voluntary disclosure of management private information. We argue that conditional conservatism acts as a mechanism that lends credibility to voluntary disclosure by providing a hard reporting benchmark that allows outsiders to better...