Using a large sample of listed firms in Japan, where management earnings forecasts are effectively mandated, we show that managers of firms covered by analysts are more likely to be accurate in terms of their initial and last forecasts and their forecast revisions during the fiscal year are more...

We focus on management earnings forecasts following debt covenant violations and examine managers’ strategic communication with bank lenders during private loan renegotiations. While the incomplete contracting theory emphasizes the importance of renegotiation following a decline in...

We revisit the predictive ability of dividend changes for firms’ future earnings and extend the literature by examining the effect of management forecasting ability. Although prior studies have examined the relationship between dividend changes and future earnings, the empirical evidence is...

Previous studies suggest that Japanese suppliers of capital, such as main banks, have private sources of information, and thus, the quality of public accounting information may be less relevant to their decisions. Studies also indicate that the firm–bank relationship in Japan has weakened with...