Should Management Earnings Guidance be Pooled? Classifying Management Earnings Guidance into Capital Market, Opportunistic, and Disclose or Abstain Rationales: Implications for Research

2012 ◽  
Author(s):  
Edward X. Li ◽  
Charles E. Wasley ◽  
Jerold L. Zimmerman
Keyword(s):  
Capital Market ◽  
Earnings Guidance ◽  
Management Earnings Guidance

The Rewards for Meeting or Beating Managers' Own Earnings Guidance

2020 ◽  
Author(s):  
Kai Wai Hui ◽  
Alfred Z. Liu ◽  
Yao Zhang
Keyword(s):  
Stock Return ◽  
Earnings Forecasts ◽  
Earnings Guidance ◽  
Cross Sectional ◽  
Earnings Expectations ◽  
Future Performance ◽  
Management Guidance ◽  
Prior Literature ◽  
Management Earnings Guidance ◽  
Analyst Earnings

This study documents a stock return premium for meeting or beating management's own earnings guidance (MBMG) that is separate and distinct from the premium for meeting or beating analysts' earnings forecasts (MBAF) documented in prior literature. Cross-sectional analyses reveal that the MBMG premium relative to the MBAF premium increases when management guidance is more informative. We also find that MBMG is incrementally informative about a firm's future performance after considering MBAF. Our findings suggest that investors consider management earnings guidance to be a performance threshold in addition to analyst earnings forecasts when forming earnings expectations.

Spreading the Word: Price Discovery and Newswire Dissemination of Management Earnings Guidance

2015 ◽  
Vol 91 (1) ◽  
pp. 317-346 ◽  
Author(s):  
Brady Twedt
Keyword(s):  
Price Discovery ◽  
Matched Control ◽  
Substantial Effect ◽  
Bad News ◽  
Discovery Process ◽  
Earnings Guidance ◽  
Management Earnings Guidance ◽  
The Impact ◽  
Guidance Information ◽  
Price Discovery Process

ABSTRACT This study investigates the impact of dissemination on the efficiency of the price discovery process with respect to management earnings guidance disclosures. I first identify firm and guidance characteristics associated with the likelihood that guidance receives coverage in the Dow Jones Newswires. Using propensity score, within-firm, and returns-based matched control samples of guidance, I find that newswire dissemination is associated with larger initial price reactions and, more importantly, an increase in the speed with which guidance information is incorporated into price. I also find that newswire coverage affects the market's reaction to stand-alone versus bundled guidance and good versus bad news guidance. This study is the first to provide evidence of systematic variation, both across and within firms, in the breadth of guidance dissemination, and it shows that this variation has a substantial effect on how investors respond to guidance. JEL Classifications: G14; M41; L82.

scholarly journals Withdrawal of Management Earnings Guidance During the COVID-19 Pandemic

2021 ◽  
Author(s):  
Aurelius Aaron ◽  
Jian Kang ◽  
Jeffrey Ng ◽  
Tjomme O. Rusticus
Keyword(s):  
Earnings Guidance ◽  
Management Earnings Guidance

Management Earnings Guidance as a Commitment Device

2021 ◽  
Author(s):  
Dirk E. Black ◽  
Brandon Gipper ◽  
Phillip C. Stocken
Keyword(s):  
Earnings Guidance ◽  
Management Earnings Guidance ◽  
Commitment Device
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