We investigate the relation between investor sentiment and property-liability insurers' loss reserves. We use the Michigan Consumer Confidence Index as a proxy for sentiment, we show that during high sentiment periods, property-liability insurers intend to under-estimate loss reserves. In...

Purpose – Previous research has provided mixed evidence on the relative importance of three earnings thresholds that managers seek to achieve: avoiding losses, avoiding earnings declines and avoiding negative earnings surprises. The purpose of this paper is to investigate whether...

This paper investigates the capital market consequences of expectations management in the postRegulation Fair Disclosure period. Results show that investors “punish” firms that deliberately issue pessimistic public guidance to dampen analysts' expectations to a beatable level in the...