One of the important attributes of high quality accounting information is its ability to aid financial statement users in forming expectations about the firm's future earnings. Prior research finds that accounting financial expertise of the audit committee is associated with higher financial...

This paper analyzes earnings management for the current year and the revision of management earnings forecasts (MEF) for the next year. It reports that the ratchet effect can be observed at the managerial level. Principals, who do not hold as much comprehensive information on productivity as...

I apply Wang's (2012) earnings forecasting framework to examine if the lower persistence of accruals in an unrestricted model of earnings dynamics (UM) implies the superiority of a restricted model (RM). In particular, I specify reported earnings in terms of respective expected earnings of UM...

We investigate the implications of voluntary forecasting activity on the persistence of actual reported figures. We further explore the impact of managements' error direction (i.e. pessimistic versus optimistic manager) on the persistence of actual reported figures. We finally explore whether...

We examine the impact of financial restatements on managers' subsequent earnings forecasts. We argue that restatements create conflicting incentives. One incentive is to repair manager reputations as information providers by providing more and better guidance via earnings forecasts. The opposing...

We investigate how the accounting treatment of intangible assets on managers' likelihood of issuing voluntary earnings guidance (MEF). We find that unrecognized intangibles (immediately expensed) are negatively associated with MEF issuance, while recognized intangibles (capitalized) show a...