Financial Journalism and Quarterly Earnings Guidance

2019 ◽  
Author(s):  
Jihun Bae ◽  
Robin Litjens ◽  
Chul Won Park ◽  
Yachang Zeng
Keyword(s):  
Earnings Guidance ◽  
Quarterly Earnings

Being Counted and Remaining Accountable: Maintenance of Quarterly Earnings Guidance by U.S. Public Companies

2021 ◽  
Author(s):  
Sun Hyun Park ◽  
Kelly Patterson
Keyword(s):  
Resource Dependence ◽  
Population Level ◽  
Operational Cost ◽  
Earnings Guidance ◽  
Public Companies ◽  
Research Attention ◽  
Quarterly Earnings ◽  
Continued Use ◽  
Structural Indicators ◽  
Market Intermediaries

Organizations are often pressured to adopt and maintain institutionally supported practices. Why do some companies remain committed to these practices, despite high operational cost and widespread frustration with them? Although prior theorists have emphasized the importance of institutional pressure at the broader population level, less research attention has been paid to the abandonment of a practice as a result of resource dependence between a firm and market intermediaries. In this paper, we theorize intermediary coverage breadth and depth as two important structural indicators of resource dependence. Firms lacking in coverage breadth (as indicated by the degree of reporting by market intermediaries) and firms with deeper coverage (as evidenced by a prolonged relationship with market intermediaries) are less likely to abandon a practice due to an increase in power imbalance and mutual dependence within the firm-intermediary relationships. We also theorize how a firm’s resource dependence, as determined by coverage structure, moderates the firm’s sensitivity to (1) observed peer support for the practice, (2) the intermediary’s expectation regarding the continued use of the practice, and (3) performance deviations that fail to meet intermediary expectations. Our empirical study of the abandonment of quarterly earnings guidance by U.S. public companies during 2001–2010 provides overall support for our theoretical arguments.

The effect of quarterly earnings guidance on share values in corporate acquisitions

2012 ◽  
Vol 18 (5) ◽  
pp. 1269-1285 ◽  
Author(s):  
Adam S. Koch ◽  
Craig E. Lefanowicz ◽  
John R. Robinson
Keyword(s):  
Earnings Guidance ◽  
Corporate Acquisitions ◽  
Quarterly Earnings

Once Bitten, Twice Shy: The Relation between Outcomes of Earnings Guidance and Management Guidance Strategy

2010 ◽  
Vol 85 (6) ◽  
pp. 1951-1984 ◽  
Author(s):  
Mei Feng ◽  
Adam S. Koch
Keyword(s):  
Information Asymmetry ◽  
Management Forecasts ◽  
Earnings Guidance ◽  
Quarterly Earnings ◽  
Management Guidance

ABSTRACT: We examine how management quarterly guidance strategy is affected by various outcomes from previously issued guidance. We find that managers are less likely to provide quarterly earnings guidance for a given year when past management forecasts have been overly optimistic, when past forecasts were unsuccessful at influencing analysts’ expectations, when past forecasts failed to reduce information asymmetry, and when past forecasts resulted in earnings disappointments. For firms that continue to give guidance, adverse prior outcomes also affect the precision of future guidance and the number of quarters within a year for which they give guidance.

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