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Several recent empirical papers assert that the decision to disclose an earnings forecast shortly before the actual … dynamic model of voluntary disclosure, we show that the decision to disclose a short-term earnings forecast reveals managers … decision to disclose a short-term earnings forecast predicts earnings three years beyond the forecasted period, and that the …
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We consider forecast guidance as a mechanism that managers use to avoid negative earnings surprises. Modeling forecast guidance using methods by Matsumoto, [Accounting Review 77 (3) (2002) 483-514] and Bartov et al. [Journal of Accounting and Economics 33 (2) (2002) 173-204], we show that...
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