Social Connections Within Executive Teams and Management Forecasts

Published Online:https://doi.org/10.1287/mnsc.2017.2925

References

  • Ajinkya B, Gift M (1984) Corporate managers’ earnings forecasts and symmetrical adjustments of market expectations. J. Accounting Res. 22(2):425–444.CrossrefGoogle Scholar
  • Ajinkya B, Bhojraj S, Sengupta P (2005) The association between outside directors, institutional investors and the properties of management earnings forecasts. J. Accounting Res. 43(3):343–376.CrossrefGoogle Scholar
  • Ancona D, Caldwell D (1992) Demography and design: Predictors of new product team performance. Organ. Sci. 3(3):321–341.LinkGoogle Scholar
  • Auriemma A (2014) Chiefs at big firms are often last to get bad news. Wall Street Journal (April 3), https://www.wsj.com/articles/chiefs-at-big-firms-are-often-last-to-get-bad-news-1396481954.Google Scholar
  • Badertscher B, Shroff N, White H (2013) Externalities of public firm presence: Evidence from private firms’ investment decisions. J. Financial Econom. 109(3):682–706.CrossrefGoogle Scholar
  • Baik B, Farber D, Lee S (2011) CEO ability and management earnings forecasts. Contemporary Accounting Res. 28(5):1645–1668.CrossrefGoogle Scholar
  • Balakrishnan K, Billings M, Kelly B, Ljungqvist A (2014) Shaping liquidity: On the causal effects of voluntary disclosure. J. Finance 69(5):2237–2278.CrossrefGoogle Scholar
  • Bamber L, Cheon Y (1998) Discretionary management earnings forecast disclosures: Antecedents and outcomes associated with forecast venue and forecast specificity choices. J. Accounting Res. 36(2):167–190.CrossrefGoogle Scholar
  • Bamber L, Jiang J, Wang I (2010) What’s my style? The influence of top managers on voluntary corporate financial disclosure. Accounting Rev. 85(4):1131–1162.CrossrefGoogle Scholar
  • Bantel K, Jackson S (1989) Top management and innovations in banking: Does the composition of the team make a difference? Strategic Management J. 10(S1):107–124.CrossrefGoogle Scholar
  • Boone C, Hendriks W (2009) Top management team diversity and firm performance: Moderators of functional-background and locus-of-control diversity. Management Sci. 55(2):165–180.LinkGoogle Scholar
  • Brochet F, Faurel L, McVay S (2011) Manager-specific effects on earnings guidance: An analysis of top executive turnovers. J. Accounting Res. 49(5):1123–1162.CrossrefGoogle Scholar
  • Burke C, Sims D, Lazzara E, Salas E (2007) Trust in leadership: A multi-level review and integration. Leadership Quart. 18(6):606–632.CrossrefGoogle Scholar
  • Buyl T, Boone C, Hendriks W, Matthyssens P (2011) Top management team functional diversity and firm performance: The moderating role of CEO characteristics. J. Management Stud. 48(1):151–177.CrossrefGoogle Scholar
  • Cheng Q, Lee J, Shevlin T (2016) Internal governance and real earnings management. Accounting Rev. 91(4):1051–1085.CrossrefGoogle Scholar
  • Coase R (1937) The nature of the firm. Economica 4(16):386–405.CrossrefGoogle Scholar
  • Cohen L, Frazzini A, Malloy C (2010) Sell-side school ties. J. Finance 65(4):1409–1437.CrossrefGoogle Scholar
  • Cross R, Parker A (2004) The Hidden Power of Social Networks: Understanding How Work Really Gets Done in Organizations (Harvard Business School Press, Boston).Google Scholar
  • Custodio C, Metzger D (2014) Financial expert CEOs: CEO’s work experience and firm’s financial policies. J. Financial Econom. 114(1):125–154.CrossrefGoogle Scholar
  • Dechow P, Dichev I (2002) The quality of accruals and earnings: The role of accrual estimation errors. Accounting Rev. 77(Supplement):35–59.CrossrefGoogle Scholar
  • Dichev I, Graham J, Harvey C, Rajgopal S (2013) Earnings quality: Evidence from the field. J. Accounting Econom. 56(2–3):1–33.CrossrefGoogle Scholar
  • Duchin R, Sosyura D (2013) Divisional managers and internal capital markets. J. Finance 68(2):387–429.CrossrefGoogle Scholar
  • Engelberg J, Gao G, Parsons C (2012) Friends with money. J. Financial Econom. 103(1):169–188.CrossrefGoogle Scholar
  • Fama E, MacBeth J (1973) Risk, return, and equilibrium: Empirical tests. J. Political Econom. 81(3):607–636.CrossrefGoogle Scholar
  • Finkelstein S (1992) Power in top management teams: Dimensions, measurement, and validation. Acad. Management J. 35(3):505–538.CrossrefGoogle Scholar
  • Fischer C (1982) To Dwell Among Friends (University of Chicago Press, Chicago).Google Scholar
  • Fracassi C, Tate G (2012) External networking and internal firm governance. J. Finance 67(1):153–194.CrossrefGoogle Scholar
  • Francis J, Philbrick D, Schipper K (1994) Shareholder litigation and corporate disclosures. J. Accounting Res. 32(2):137–164.CrossrefGoogle Scholar
  • Francis J, LaFond R, Olsson P, Schipper K (2005) The market pricing of accruals quality. J. Accounting Econom. 39(2):295–327.CrossrefGoogle Scholar
  • Gigone D, Hastie R (1993) The common knowledge effect: Information sharing and group judgment. J. Personality Soc. Psych. 65(5):959–974.CrossrefGoogle Scholar
  • Goodman T, Neamtiu M, Shroff N, White H (2014) Management forecast quality and capital investment decisions. Accounting Rev. 89(1):331–365.CrossrefGoogle Scholar
  • Hambrick D, Mason P (1984) Upper echelons: The organization as a reflection of its top managers. Acad. Management Rev. 9(2):193–206.CrossrefGoogle Scholar
  • Hayek F (1945) The use of knowledge in society. Amer. Econom. Rev. 35(4):519–530.Google Scholar
  • Hayn C (1995) The information content of losses. J. Accounting Econom. 20(2):125–153.CrossrefGoogle Scholar
  • Heflin F, Subramanyam K, Zhang Y (2003) Regulation FD and the financial information environment: Early evidence. Accounting Rev. 78(1):1–37.CrossrefGoogle Scholar
  • Hirst E, Koonce L, Venkataraman S (2008) Management earnings forecasts: A review and framework. Accounting Horizons 22(3):315–338.CrossrefGoogle Scholar
  • IBM (2014) Exploring the inner circle—Insights from the Global C-suite Study. Report, IBM Institute for Business Value. Last accessed March 6, 2018, http://contentviewer.adobe.com/s/IBM%20IBV/688dcdc2d33c4fa28433cb2be97e9895/Exploring%20the%20inner%20circle/cover.html.Google Scholar
  • Ittner C, Michels J (2017) Risk-based forecasting and planning and management earnings forecasts. Rev. Accounting Stud. 22(3):1005–1047.CrossrefGoogle Scholar
  • Jehn K, Northcraft G, Neale M (1999) Why differences make a difference: A field study of diversity, conflict, and performance in workgroups. Admin. Sci. Quart. 44(4):741–763.CrossrefGoogle Scholar
  • Kaplan R (1984) The evolution of management accounting. Accounting Rev. 59(3):390–418.Google Scholar
  • Khanna V, Kim E, Lu Y (2015) CEO connectedness and corporate frauds. J. Finance 70(3):1203–1252.CrossrefGoogle Scholar
  • Kilduff M, Angelmar R, Mehra A (2000) Top management-team diversity and firm performance: Examining the role of cognitions. Organ. Sci. 11(1):21–34.LinkGoogle Scholar
  • Knyazeva A, Knyazeva D, Masulis R (2013) The supply of corporate directors and board independence. Rev. Financial Stud. 26(6):1561–1605.CrossrefGoogle Scholar
  • Lang M, Lundholm R (1996) Corporate disclosure policy and analyst behavior. Accounting Rev. 71(4):476–492.Google Scholar
  • Larcker D, So E, Wang C (2013) Boardroom centrality and firm performance. J. Accounting Econom. 55(2–3):225–250.CrossrefGoogle Scholar
  • Lee S, Matsunaga S, Park C (2012) Management forecast accuracy and CEO turnover. Accounting Rev. 87(6):2095–2122.CrossrefGoogle Scholar
  • Li F (2008) Annual report readability, current earnings, and earnings persistence. J. Accounting Econom. 45(2):221–247.CrossrefGoogle Scholar
  • Li F, Minnis M, Nagar V, Rajan M (2014) Knowledge, compensation, and firm value: An empirical analysis of firm communication. J. Accounting Econom. 58(1):96–116.CrossrefGoogle Scholar
  • McNichols MF (2002) Discussion of the quality of accruals and earnings: The role of accrual estimation errors. Accounting Rev. 77(Supplement):61–69.CrossrefGoogle Scholar
  • McPherson M, Smith-Lovin M, Cook J (2001) Birds of a feather: Homophily in social networks. Annual Rev. Sociol. 27:415–444.CrossrefGoogle Scholar
  • Mishra A (1996) Organizational responses to crisis: The centrality of trust. Kramer RM, Tyler TR, eds. Trust in Organizations: Frontiers of Theory and Research (Sage, Thousand Oaks, CA), 261–287.CrossrefGoogle Scholar
  • Murphy M (2014) Flying school colors in the C-suite. Wall Street Journal (July 21), https://blogs.wsj.com/cfo/2014/07/21/flying-school-colors-in-the-c-suite/.Google Scholar
  • Pelled L, Eisenhardt K, Xin K (1999) Exploring the black box: An analysis of work group diversity, conflict, and performance. Admin. Sci. Quart. 44(1):1–28.CrossrefGoogle Scholar
  • PricewaterhouseCoopers (2011) Financial Planning: Realizing the Value of Budgeting and Forecasting (CFO Publishing, Boston.Google Scholar
  • Roberts K, O’Reilly C (1974) Failures in upward communication in organizations: Three possible culprits. Acad. Management J. 17(2):205–215.CrossrefGoogle Scholar
  • Rogers E, Bhowmik D (1970–1971) Homophily-heterophily: Relational concepts for communication research. Public Opinion Quart. 34(4):523–538.CrossrefGoogle Scholar
  • Sherin K (2010) Financial planning and investor communication at GE (with a look at why we ended earnings guidance). J. Appl. Corporate Finance 22(4):8–16.CrossrefGoogle Scholar
  • Shroff N (2017) Corporate investment and changes in GAAP. Rev. Accounting Stud. 22(1):1–63.CrossrefGoogle Scholar
  • Shroff N, Sun A, White H, Zhang W (2013) Voluntary disclosure and information asymmetry: Evidence from the 2005 securities offering reform. J. Accounting Res. 51(5):1299–1345.CrossrefGoogle Scholar
  • Trueman B (1986) Why do managers voluntarily release earnings forecasts? J. Accounting Econom. 8(1):53–71.CrossrefGoogle Scholar
  • Tversky A, Kahneman D (1974) Judgment under uncertainty: Heuristics and biases. Science 185(4157):1124–1131.CrossrefGoogle Scholar
  • Waymire G (1985) Earnings volatility and voluntary management forecast disclosure. J. Accounting Res. 23(1):268–295.CrossrefGoogle Scholar
  • Williams P (1996) The relation between a prior earnings forecast by management and analyst response to a current management forecast. Accounting Rev. 71(1):103–113.Google Scholar
  • Yang H (2012) Capital market consequences of managers’ voluntary disclosure styles. J. Accounting Econom. 53(1–2):167–184.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.