Analysts' Influence on Managers' Guidance Academic Article

abstract

• ABSTRACT Analysts ask managers for forward-looking information in one-third of quarterly conference calls; most frequently, seeking earnings per share guidance. In this study, we examine the long-term consequences of analysts' questions on future manager disclosure choices. Using six types of commonly provided guidance, we find that when analysts request new guidance or ask about prior guidance, managers are more likely to provide similar guidance in future quarters. When analysts do not ask about prior guidance, managers are less likely to provide that type of guidance in the future. This effect is long-lasting, spills over into earnings announcements, and is strongest for firms with the most severe information problems. Our results provide evidence that analysts shape managers' disclosure choices in meaningful ways.

authors

• Green, Jeremiah

published proceedings

• The Accounting Review

author list (cited authors)

• Chapman, K., & Green, J.

citation count

• 48

complete list of authors

• Chapman, Kimball||Green, Jeremiah

publication date

• January 2018

publisher

• American Accounting Association  Publisher

published in

• Accounting Review  Journal

keywords

• 35 Commerce, Management, Tourism And Services
• 3501 Accounting, Auditing And Accountability
• 3502 Banking, Finance And Investment
• 3507 Strategy, Management And Organisational Behaviour

Digital Object Identifier (DOI)

• 10.2308/accr-51778

start page

• 45

end page

• 69

volume

• 93

issue

• 1

URL

• http://dx.doi.org/10.2308/accr-51778