We document that, when revising their short-term earnings forecasts in response to management guidance, analysts wishing to curry favor with management weight the guidance more heavily than predicted based on the credibility and usefulness of the guidance. This overweighting of guidance is...

We document that, when revising their short-term earnings forecasts in response to management guidance, analysts wishing to curry favor with management weight the guidance more heavily than predicted based on the credibility and usefulness of the guidance. This overweighting of guidance is...

This paper examines the association between managers’ incorporation of consumer sentiment news in their forecasts and firm performance. We find that firms with revenue forecasts that incorporate U.S. consumer sentiment news to a smaller extent perform worse subsequently. The association is...