•  
  •  
 

Journal of Undergraduate Research

Keywords

management earnings forecasts, MEF, SEC filings, disclosures, press releases

College

Marriott School of Management

Department

Accountancy

Abstract

In addition to mandatory disclosures such as SEC filings, managers have the option of disclosing information voluntarily to the public. Press releases and conference calls are two ways managers often reveal information to the market, and one of the most important disclosures made through these venues is the forecast of future earnings. Prior research has found that investors rely on information received from management earnings forecasts (MEFs). Since managers are involved in the day-to-day activities of their companies, they have access to important “insider information.” As a result, investors rely heavily on this information in forming expectations about the company. Therefore, it isn’t surprising that prior research documents that MEFs often affect stock prices. While prior research has explored the extent to which MEFs influence investors’ decisions, it has not thoroughly investigated when and why managers choose to issue MEFs. The focus of this project is to explore factors associated with managers’ decision to forecast earnings in a given year.

Download

Included in

Accounting Commons

Share

COinS