benchmark (i.e., forecast innovations) to which most studies have paid little attention. A forecast innovation is the difference … investigate whether and why managers manipulate their initial forecasts to avoid negative forecast innovations, and how investors … respond to them. First, we find that managers engage in forecast management through discretionary forecasts to avoid negative …

restatements of the condensed financial statements), and management forecast accuracy in Japan. The Japanese market provides a … the statements and, most likely, the earnings forecast, as well. Our results suggest that restatement firms are likely to …