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updates to the forecast and the 10-K report. Lastly, we show that financial analysts rely more on the earnings forecasts of …
Persistent link: https://www.econbiz.de/10013218627
We examine how CEO overconfidence impacts profitability and stock return for firms at different stages in their life cycle. Extant research has shown that an overconfident personality could affect the CEO's decision-making on investment, financial reporting, and the firm's choice of policies. It...
Persistent link: https://www.econbiz.de/10013250274
Our paper examines the association between components of analysts' earnings surprises and future earnings. We decompose the analysts' earnings surprise into its revenue, pretax margin, pretax income, and tax components. After controlling for current period earnings and discretionary accruals, we...
Persistent link: https://www.econbiz.de/10012999728
We analyze three different mechanical models to forecast earnings and compare their forecasts with those of analysts … from analysts' forecasts more reliable than ICCs based on model forecasts? And 3) does higher forecast performance also … reliability of analyst-based ICCs seems to indicate a missing link between forecast performance and ICC reliability, in fact …
Persistent link: https://www.econbiz.de/10012901020
partially predicted by our measure. We then show that our measure is associated with both analyst forecast accuracy and …
Persistent link: https://www.econbiz.de/10013308277
. We examine this link by testing whether management earnings forecasts (MEFs) of firms meeting/beating analysts’ forecast … benchmarks exhibit greater credibility than MEFs of firms missing these benchmarks, based on the informativeness of forecast news …. We find for meet/beat firms, the association of forecast news with cumulative abnormal returns is stronger than for miss …
Persistent link: https://www.econbiz.de/10013251848
Using 14,800 forecasts of one-year S&P 500 returns made by Chief Financial Officers over a 12-year period, we track the individual executives who provide multiple forecasts to study how their beliefs evolve dynamically. While CFOs' return forecasts are systematically unbiased, their confidence...
Persistent link: https://www.econbiz.de/10012847526
Equity-based compensation causes increases in firms' share count and dilutes Earnings Per Share (EPS), which provides firms with an incentive to raise EPS using either share buybacks or earnings management. We employ a regression discontinuity framework to provide evidence of a causal link...
Persistent link: https://www.econbiz.de/10012853424
This paper documents how the net profit margin of private firms improves when the CEOs of the companies relocate their … private business groups, we find that the top managers move closer to the headquarters when the profitability of the firms has … closer to their corporate headquarters. The profit margin rebounds after their relocation. This finding implies that physical …
Persistent link: https://www.econbiz.de/10012934988
This note deals with the simplified case of a principal (e.g., a firm's board of directors) which delegates execution of an economic activity to a business unit (or a subsidiary firm) managed by a manager. It is assumed that the manager has no control over the cash flows injected into the unit...
Persistent link: https://www.econbiz.de/10013030775