We consider forecast guidance as a mechanism that managers use to avoid negative earnings surprises. Modeling forecast … forecast guidance to avoid negative earnings surprises than managers in weak-investor-protection countries. We also show that … US managers are more prone to use forecast guidance to avoid negative earnings surprises than managers in other countries …

Managerial behavior differs considerably when managers report quarterly profits versus losses. When they report profits …, managers seek to just meet or slightly beat analyst estimates. When they report losses, managers do not attempt to meet or … slightly beat analyst estimates. Instead, managers often do not forewarn analysts of impending losses, and the analyst's signed …

and insider selling in the following year, consistent with managers understanding the myopic nature of their actions. Our … results confirm survey evidence suggesting managers engage in myopic behavior to beat benchmarks …

forecast properties. The evidence shows that analysts' earnings forecast accuracy is higher and the forecast dispersion is … higher forecast accuracy and less forecast dispersion in the non-Big Five auditor sample but not in the Big Five auditor …

analysts' forecasts. We focus primarily on two groups of firms: those that miss their forecast but appear not to have attempted … to exceed it by managing earnings, and those that exceed their forecast but appear to have done so through accruals or …

forecast properties. The evidence shows that analysts' earnings forecast accuracy is higher and the forecast dispersion is … higher forecast accuracy and less forecast dispersion in the non-Big Five auditor sample but not in the Big Five auditor …

intermediaries. Prior research finds that accruals and analyst earnings forecast revisions predict future returns. We find that the … accrual and forecast revision strategies generate hedge returns of 15.5% and 5.5% when implemented independently. Strikingly …, a combined strategy that uses forecast revisions to refine the accrual strategy generates a hedge return of 28.5%. Firms …

The state of the art in the analyst forecasting literature is that analyst earnings forecast ability is only firm … absence of a “spillover” effect, i.e., investors do not consider an analyst's earnings forecast ability regarding firm k when … reacting to his earnings forecast revision for firm j. We re-examine the issue of whether or not earnings forecast ability is …

updates to the forecast and the 10-K report. Lastly, we show that financial analysts rely more on the earnings forecasts of …