Purpose – The purpose of this paper is to examine whether earnings quality attributes are reflected in AM best's financial strength ratings (FSRs), a measure widely used in the insurance industry to assess financial health. Design/methodology/approach – Using a sample of insurance companies...

We inform the policy debate on whether management earnings guidance fosters managerial myopia by examining whether firms providing earnings guidance exhibit less firm innovation. At the core of the debate is whether guidance impedes long-term value creation, and evidence on the association...