This study examines the role of differences in firms' propensity to meet earnings expectations in explaining why firms with high analyst forecast dispersion experience relatively low future stock returns. We first demonstrate that the negative relation between dispersion and returns is...

In this paper, I investigate (1) the extent to which corporate governance is associated with managers' choice of the mix of earnings management and expectations management to avoid negative earnings surprises, and (2) whether the association has changed following the passage of the...