To blame or not to blame: Analyst's recreations to external explanations for poor financial performance
Article Abstract:
The self-serving disclosures that are provided by managers blame temporary external factors for poor financial performances, but the results of an experiment conducted by 124 financial analysts shows that when analysts perceive such disclosures as plausible, they provide higher earnings forecasts and stock valuations if the explanation is not provided. The complete details of the experiment are also presented.
Publication Name: The Journal of Accounting and Economics
Subject: Business
ISSN: 0165-4101
Year: 2005
User Contributions:
Comment about this article or add new information about this topic:
Voluntary disclosure of precision information
Article Abstract:
A model of an entrepreneurEs acquisition and voluntary disclosure of precision information that accompanies estimates of the value of tradable assets is provided. It is shown that the entrepreneur over-invests in the acquisition of precision information due to the option value of discretion over disclosure.
Publication Name: The Journal of Accounting and Economics
Subject: Business
ISSN: 0165-4101
Year: 2004
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Deregulation, strategic choice, risk and financial performance. Strategic groups: a cognitive perspective
- Abstracts: The chairman's statement and corporate financial performance. The incremental effect of narrative accounting information in corporate annual reports
- Abstracts: A note on analysts' earnings forecast errors distribution. Weighing the evidence on the relation between external corporate financing activities, accruals and stock returns
- Abstracts: Limited attention, information disclosure, and financial reporting. Discussion of limited attention information disclosure, and financial reporting