This study investigates whether effective audit committees influence the association between management earnings forecasts and the properties of analysts‟ forecasts. We posit that this influence on the part of an audit committee would likely result from increased responsibility for monitoring...

Using a novel dataset, we show that components of firms' GAAP earnings stemming from ancillary business activities or transitory shocks are significant in frequency and magnitude. These components have grown over time and are dispersed across various sections of the 10-K. Excluding them from...

Bird, Karolyi, and Ruchti (2019) estimate a structural model of earnings management in the setting of meeting-or-beating the analyst consensus forecast. I provide an overview of their methods and findings, and then discuss the assumptions, benefits, and limitations of their approach

We examine whether analysts’ engagement in earnings conference calls curbs real activities earnings management. We find that analysts are more likely to ask questions on discretionary expenses at conference calls of firms that are suspects of lowering discretionary expenses to meet or narrowly...

The aim of our study is to determine, within the area of Listed Spanish companies, whether analyst forecasts constitute an incentive to manage earnings (upwards to achieve them or downwards to avoid exceeding them) and whether this incentive acquires the same or different importance for the...

Kirk, Reppenhagen, and Tucker (2014) find that investors use individual analyst forecasts as additional earnings benchmarks. We investigate whether executives manage earnings to beat these individual benchmarks. Using year-end effective tax rate (ETR) manipulation as our setting, we find that...

This paper provides evidence on the net stock price effects associated with managers following a disclosure strategy of guiding earnings down to a level where they can report a positive earnings surprise. Prior literature documents a stock price premium when firms meet or beat analysts'...

An analysis of about 300000 earnings forecasts, created by 18000 individual forecasters for earnings of over 300 S&P listed firms, shows that these forecasts are predictable to a large extent using a statistical model that includes publicly available information. When we focus on the...

This paper presents results from an experiment and follow-up survey examining whether stock prices influence analysts' earnings forecasts. In our experiment, prices influence analysts' forecasts when uncertainty about future earnings is high, but not when uncertainty is low. Additional analyses...

Theory suggests that the informativeness of price at the time of an earnings announcement increases with the number of informed traders who possess superior information to process news from firm disclosures (Kyle 1985; Admati and Pfleiderer 1988; Kim and Verrecchia 1994). In this paper, we investigate...