Discretionary disclosure and external financing
Article Abstract:
A study is conducted to examine how companies' external financing decisions are related to their propensity to issue qualitative or quantitative annual earnings forecasts. Specifically, the study seeks to determine the relationship between discretionary disclosures and the tendency of management to access capital markets, to establish whether earnings forecasts are associated with specific financing events, and to identify the characteristics of these forecasts. Data for the study are obtained from 1,880 companies selected from the 1983 COMPUSTAT Annual Industrials File. Results show that companies are more inclined to release earnings forecasts if they tap equity markets over the sample period. However, these companies' forecasting behavior remains unchanged in the period surrounding an offering.
Publication Name: Accounting Review
Subject: Business, general
ISSN: 0001-4826
Year: 1995
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The effects of output interference, availability, and accounting information on investors' predictive judgements
Article Abstract:
The effects of output interference and availability on predictive earnings judgements are explored. Output interference refers to the psychological phenomenon of whatever is thought of first interfering with later thoughts about an issue. Availability refers to the judging of future event likelihood from the relative number of pro versus con reasons generated. Data was collected from a survey of 58 investors. Results indicate that output interference and availability do interfere with earnings predictions, and that financial accounting information provides limited reduction to output interference and availability biases.
Publication Name: Accounting Review
Subject: Business, general
ISSN: 0001-4826
Year: 1989
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Evidence of informational asymmetries from management earnings forecasts and stock returns
Article Abstract:
Research examines the difference between the future earnings information investors gain from the stock price to the earnings information gained from management's earnings forecast. Stock prices were found to contain more information than management forecasts. Research on forecasts from 1979 through 1983 found that management forecasts were biased for all years except 1982.
Publication Name: Accounting Review
Subject: Business, general
ISSN: 0001-4826
Year: 1989
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