In this study, we examine the effect of accrual-based earnings management on the association between managers' earnings … forecast errors and accruals, which we label “managers' accrual-related forecast bias.” We build on extensive research which … finds that managers engage in accrual-based earnings management to meet or beat earnings benchmarks and report smooth …

midpoint is the best proxy for managers' earnings expectations revealed in range forecasts. We argue that given managers …' asymmetric loss functions regarding earnings surprises, managers are unlikely to place their true earnings expectations at the … midpoint of range forecasts. We predict that managers' true expectations are close to the upper bound of range forecasts. We …