The Genesis of Voluntary Disclosure: An Analysis of Firms’ First Earnings Guidance

Published Online:https://doi.org/10.1287/mnsc.2019.3514

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
  • Anilowski C, Feng M, Skinner DJ (2007) Does earnings guidance affect market returns? The nature and information content of aggregate earnings guidance. J. Accounting Econom. 44(1–2):36–63.CrossrefGoogle Scholar
  • Baginski SP, Hassell J (1990) The market interpretation of management earnings forecasts as a predictor of subsequent financial analyst forecast revision. Accounting Rev. 65(1):175–190.Google Scholar
  • Baginski SP, Hinson LA (2016) Cost of capital free-riders. Accounting Rev. 91(5):1291–1313.CrossrefGoogle Scholar
  • Baginski SP, Rakow KC (2012) Management earnings forecast disclosure policy and the cost of equity capital. Rev. Accounting Stud. 17(2):279–321.CrossrefGoogle Scholar
  • Baginski SP, Hassell J, Kimbrough M (2004) Why do managers explain their earnings forecasts? J. Accounting Res. 42(1):1–29.CrossrefGoogle Scholar
  • Baginski SP, Hassell J, Neill J (1999) Predicting subsequent management forecasting behavior at the date of an initial public offering. Rev. Quant. Finance Accounting 12(1):5–21.CrossrefGoogle Scholar
  • Bailey W, Li H, Mao CX, Zhong R (2003) Regulation fair disclosure and earnings information: market, analyst, and corporate responses. J. Finance 58(6):2487–2514.CrossrefGoogle Scholar
  • Balakrishnan K, Billings MB, Kelley B, Ljungqvist A (2014) Shaping liquidity: On the causal effects of voluntary disclosure. J. Finance 69(5):2237–2278.CrossrefGoogle Scholar
  • Ball R, Jayaraman S, Shivakumar L (2012) Audited financial reporting and voluntary disclosure as complements: A test of the confirmation hypothesis. J. Accounting Econom. 53(1–2):136–166.CrossrefGoogle Scholar
  • Bamber LS, 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
  • Barth ME, Landsman WR, Taylor DJ (2017) The JOBS Act and information uncertainty in IPO firms. Accounting Rev. 92(6):25–47.CrossrefGoogle Scholar
  • Beyer A, Cohen DA, Lys TZ, Walther BR (2010) The financial reporting environment: Review of the recent literature. J. Accounting Econom. 50(2–3):296–343.CrossrefGoogle Scholar
  • Billings MB, Jennings R, Lev B (2015) On guidance and volatility. J. Accounting Econom. 60(2–3):161–180.CrossrefGoogle Scholar
  • Black BS, Gibson RJ (1998) Venture capital and the structure of capital markets: Banks vs. stock markets. J. Financial Econom. 47:243–277.CrossrefGoogle Scholar
  • Bushee B (1998) The influence of institutional investors on myopic R&D investment behavior. Accounting Rev. 73(3):305–333.CrossrefGoogle Scholar
  • Carter RB, Dark FH, Singh AK (1998) Underwriter reputation, initial returns, and the long-run performance of IPO stocks. J. Finance 53(1):285–311.CrossrefGoogle Scholar
  • Chen S, Matsumoto D, Rajgopal S (2011) Is silence golden? An empirical analysis of firms that stop giving quarterly earnings guidance. J. Accounting Econom. 51(1–2):134–150.CrossrefGoogle Scholar
  • Chuk E, Matsumoto D, Miller GS (2013) Assessing methods of identifying management forecasts: CIG vs. researcher collected. J. Accounting Econom. 55(1):23–42.CrossrefGoogle Scholar
  • Coller M, Yohn TL (1997) Management forecasts and information asymmetry: An examination of bid-ask spreads. J. Accounting Res. 35(2):181–191.CrossrefGoogle Scholar
  • Core J, Guay W, Verdi R (2008) Is accruals quality a priced risk factor? J. Accounting Econom. 46(1):2–22.CrossrefGoogle Scholar
  • Cox DR (1972) Regression models and life-tables. J. Roy. Statist. Soc. Series B: Statist. Methodological 34(2):187–220.Google Scholar
  • Diamond DW, Verrecchia RE (1991) Disclosure, liquidity, and the cost of capital. J. Finance 46(4):1325–1359.CrossrefGoogle Scholar
  • Dye RA (1985) Disclosure of nonproprietary information. J. Accounting Res. 23(1):123–145.CrossrefGoogle Scholar
  • Einhorn E, Ziv A (2008) Intertemporal dynamics of corporate voluntary disclosures. J. Accounting Res. 46(3):567–589.CrossrefGoogle Scholar
  • Ellis K, Michaely R, O’Hara M (2000) When the underwrite is the market maker: An examination of trading in the IPO aftermarket. J. Finance 55(3):1039–1074.CrossrefGoogle Scholar
  • Ertimur Y, Sletten E, Sunder J (2014) Large shareholders and disclosure strategies: Evidence from IPO lockup expirations. J. Accounting Econom. 58(1):79–95.CrossrefGoogle Scholar
  • Field LC, Hanka G (2001) The expiration of IPO share lockups. J. Finance 56(2):471–500.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
  • Graham JR, Harvey CR, Rajgopal S (2005) The economic implications of corporate financial reporting. J. Accounting Econom. 40:3–73.CrossrefGoogle Scholar
  • Guo RJ, Lev B, Zhou N (2004) Competitive costs of disclosure by biotech IPOs. J. Accounting Res. 42(2):319–355.CrossrefGoogle Scholar
  • Heflin F, Subramanyam KR, Zhang Y (2003) Regulation FD and the financial information environment: Early evidence. Accounting Rev. 78(1):1–37.CrossrefGoogle Scholar
  • Houston JF, Lev B, Tucker JW (2010) To guide or not to guide? Causes and consequences of stopping quarterly earnings guidance. Contemp. Accounting Res. 27(1):143–185.CrossrefGoogle Scholar
  • Hutton AP, Miller GS, Skinner DJ (2003) The role of supplementary statements with management earnings forecasts. J. Accounting Res. 41(5):867–890.CrossrefGoogle Scholar
  • Hutton AP, Stocken PC (2009) Prior forecasting accuracy and investor reaction to management earnings forecasts. Working paper, Boston College, Boston, and Dartmouth College, Hanover, NH.Google Scholar
  • Jennings R (1987) Unsystematic security price movements, management earnings forecasts, and revisions in consensus analyst earnings forecasts. J. Accounting Res. 25(1):90–110.CrossrefGoogle Scholar
  • Jung WO, Kwon YK (1988) Disclosure when the market is unsure of information endowment of managers. J. Accounting Res. 26(1):146–153.CrossrefGoogle Scholar
  • Leuz C, Verrecchia RE (2000) The economic consequences of increased disclosure. J. Accounting Res. 38(3):91–124.CrossrefGoogle Scholar
  • Ljungqvist A (2007) IPO Underpricing. B. Espen Eckbo, ed. Handbook in Corporate Finance: Empirical Corporate Finance (Elsevier, Amsterdam), 375–422.Google Scholar
  • Loughran T, McDonald B (2013) IPO first-day returns, offer price revisions, volatility, and form S-1 language. J. Financial Econom. 109(2):307–326.CrossrefGoogle Scholar
  • Loughran T, McDonald B (2014) Measuring readability in financial disclosures. J. Finance 69(4):1643–1671.CrossrefGoogle Scholar
  • Loughran T, Ritter J (2004) Why has IPO underpricing changed over time? Financial Management 33(3):5–37.Google Scholar
  • Lowry M, Schwert GW (2002) IPO market cycles: Bubbles or sequential learning? J. Finance 57(3):1171–1200.CrossrefGoogle Scholar
  • Lowry M, Officer MS, Schwert GW (2010) The variability of IPO initial returns. J. Finance 65(2):425–465.CrossrefGoogle Scholar
  • Michaely R, Shaw WH (1994) The pricing of initial public offerings: tests of adverse-selection and signaling theories. Rev. Financial Stud. 7(2):279–319.CrossrefGoogle Scholar
  • Miller G (2002) Earnings performance and discretionary disclosure. J. Accounting Res. 40(1):173–204.CrossrefGoogle Scholar
  • National Investor Relations Institute (2014) NIRI Guidance Practices Survey: 2014 Report (NIRI, Alexandria, VA).Google Scholar
  • Ng J, Tuna İ, Verdi R (2013) Management forecast credibility and underreaction to news. Rev. Accounting Stud. 18(4):956–986.CrossrefGoogle Scholar
  • Pownall G, Wasley C, Waymire G (1993) The stock price effects of alternative types of management earnings forecasts. Accounting Rev. 68(4):896–912.Google Scholar
  • Rogers JL, Skinner DJ, Van Buskirk A (2009) Earnings guidance and market uncertainty. J. Accounting Econom. 48(1):90–109.CrossrefGoogle Scholar
  • Schrand CM, Verrecchia RE (2005) Information disclosure and adverse selection explanations for IPO underpricing. Working paper, University of Pennsylvania, Philadelphia.Google Scholar
  • Tang M (2015) Consistency in management earnings guidance patterns. Working paper, New York University, New York.Google Scholar
  • Trueman B (1986) Why do managers voluntarily release earnings forecasts? J. Accounting Econom. 8(1):53–71.CrossrefGoogle Scholar
  • Verrecchia RE (1983) Discretionary disclosure. J. Accounting Econom. 5:179–194.CrossrefGoogle Scholar
  • Wang IY (2007) Private earnings guidance and its implications for disclosure regulation. Accounting Rev. 82(5):1299–1332.CrossrefGoogle Scholar
  • Williams PA (1996) The relation between a prior earnings forecast by management and analyst response to a current management forecast. Accounting Rev. 71(1):103–115.Google 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.