Trueman (1986) theorizes that managers voluntarily issue earnings forecasts to signal their ability. Consistent with this theory, we find that the likelihood and frequency of management earnings forecast issuance increase with CEO ability, as proxied by (i) press citations, (ii) a measure...

This study examines whether and why the stock market assigns an incremental premium to the act of beating analyst earnings forecasts when the economy is unforecastable. Our study uses a novel measure of macroeconomic (macro) uncertainty from Jurado et al. (2015) that captures periods during...

We investigate whether investors' perception of a firm's trustworthiness affects underreaction to earnings news. We develop a model that predicts how trust helps explain underreaction to news, and test this prediction under three different empirical settings where a firm's perceived...