Mechanisms To Meet Beat Analyst Earnings Expectations In The Pre And Post Sarbanes Oxley Eras PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Mechanisms To Meet Beat Analyst Earnings Expectations In The Pre And Post Sarbanes Oxley Eras PDF full book. Access full book title Mechanisms To Meet Beat Analyst Earnings Expectations In The Pre And Post Sarbanes Oxley Eras.
| Author | : Eli Bartov |
| Publisher | : |
| Total Pages | : 44 |
| Release | : 2008 |
| Genre | : |
| ISBN | : |
Download Mechanisms to Meet/Beat Analyst Earnings Expectations in the Pre- and Post-Sarbanes-Oxley Eras Book in PDF, ePub and Kindle
This paper asks two questions. First, has the prevalence of expectations management tomeet/beat analyst expectations changed in the aftermath of the 2001-2002 accountingscandals and the passage of the 2002 Sarbanes-Oxley Act (SOX)? Second, has the mixamong the three mechanisms used for meeting earnings targets: accrual earningsmanagement, real earnings management, and earnings expectations management shiftedin the Post-SOX Period? We document that the propensity to meet/beat analystexpectations has declined significantly in the Post-SOX Period. Our primary findingsexplain this pattern. In particular, we find a decline in the use of expectationsmanagement and accrual management, and no change in real earnings management in thePost-SOX Period relative to the preceding seven-year period. Our results are robust tocontrolling for varying macro economic conditions. These findings contribute to theacademic literature, investors, and regulators.
| Author | : Eli Bartov |
| Publisher | : |
| Total Pages | : 45 |
| Release | : 2008 |
| Genre | : |
| ISBN | : |
Download The 'Numbers Game' in The Pre-and Post-Sarbanes-Oxley Eras Book in PDF, ePub and Kindle
This paper asks two questions. First, has the prevalence of expectations management to meet/beat analyst expectations changed in the aftermath of the 2001-2002 accounting scandals and the passage of the 2002 Sarbanes-Oxley Act (SOX)? Second, has the mix among the three mechanisms used for meeting earnings targets: accrual earnings management, real earnings management, and earnings expectations management shifted in the Post-SOX Period? We document that the propensity to meet/beat analyst expectations has declined significantly in the Post-SOX Period. Our primary findings explain this pattern. In particular, we find a decline in the use of expectations management and accrual management, and no change in real earnings management in the Post-SOX Period relative to the preceding seven-year period. Our results are robust to controlling for varying macro economic conditions. These findings contribute to the academic literature, investors, and regulators.
| Author | : Joshua Ronen |
| Publisher | : Springer Science & Business Media |
| Total Pages | : 587 |
| Release | : 2008-08-06 |
| Genre | : Business & Economics |
| ISBN | : 0387257713 |
Download Earnings Management Book in PDF, ePub and Kindle
This book is a study of earnings management, aimed at scholars and professionals in accounting, finance, economics, and law. The authors address research questions including: Why are earnings so important that firms feel compelled to manipulate them? What set of circumstances will induce earnings management? How will the interaction among management, boards of directors, investors, employees, suppliers, customers and regulators affect earnings management? How to design empirical research addressing earnings management? What are the limitations and strengths of current empirical models?
| Author | : Cheng F. Lee |
| Publisher | : Center for PBBEFR & Airiti Press |
| Total Pages | : |
| Release | : 2012-12-01 |
| Genre | : Business & Economics |
| ISBN | : 9866286622 |
Download Advances in Quantitative Analysis of Finance and Accounting (New Series，2012) Vol．10 Book in PDF, ePub and Kindle
Advances in Quantitative Analysis of Finance and Accounting (New Series) is an annual publication designed to disseminate developments in the quantitative analysis of finance and accounting. The publication is a forum for statistical and quantitative analyses of issues in finance and accounting as well as applications of quantitative methods to problems in financial management, financial accounting, and business management. The objective is to promote interaction between academic research in finance and accounting and applied research in the financial community and the accounting profession.
| Author | : |
| Publisher | : Universal-Publishers |
| Total Pages | : 131 |
| Release | : |
| Genre | : |
| ISBN | : 1612335942 |
Download Global Business and Management Research : An International Journal Vol. 4, No. 2 Book in PDF, ePub and Kindle
| Author | : Lixin Su |
| Publisher | : |
| Total Pages | : 326 |
| Release | : 2005 |
| Genre | : Corporations |
| ISBN | : |
Download Earnings Management and Forecast Guidance as Mechanisms to Meet Or Beat Analysts' Earnings Forecasts Book in PDF, ePub and Kindle
| Author | : Kevin Koh |
| Publisher | : |
| Total Pages | : 44 |
| Release | : 2007 |
| Genre | : |
| ISBN | : |
Download Meeting or Beating Analyst Expectations in the Post-Scandals World Book in PDF, ePub and Kindle
The pressure to meet/beat analysts' expectations is often blamed for the recent onslaught of accounting scandals. We investigate changes in the meeting/beating phenomenon post-scandals and find that the stock market premium to meeting or just beating analyst estimates has disappeared while the premium to beating by a larger margin has diminished. In the post-scandals period, managers tend to meet or just beat analysts' forecasts less often. Further, managers rely less on income-increasing discretionary accruals and more on earnings guidance. Consistent with lower earnings management, the relation between meeting/beating and future operating performance has increased post-scandals, suggesting that the decline in market premium is possibly unwarranted.
| Author | : American Accounting Association |
| Publisher | : |
| Total Pages | : 388 |
| Release | : 2007 |
| Genre | : Accounting |
| ISBN | : |
Download Program and Proceedings Book in PDF, ePub and Kindle
| Author | : Shawn X. Huang |
| Publisher | : |
| Total Pages | : 43 |
| Release | : 2017 |
| Genre | : |
| ISBN | : |
Download Analyst Coverage and the Likelihood of Meeting Or Beating Analyst Earnings Forecasts Book in PDF, ePub and Kindle
This paper examines the relation between analyst coverage and whether firms meet or beat analyst earnings forecasts. We distinguish between whether a firm's reported quarterly earnings meet (i.e., equal or exceed by one cent) or beat (i.e., exceed by more than one cent) its consensus analyst earnings forecasts. We find a positive relation between analyst coverage and whether a firm meets or beats analyst forecasts. However, the more pronounced relation is that between analyst coverage and meeting analyst forecasts. Also, when we consider exogenous shocks to analyst coverage due to brokerage mergers or closures and conglomerate spinoffs, we continue to find a robust positive relation only between analyst coverage and meeting analyst forecasts. To shed light on the causal relation involved, we examine and find that greater analyst coverage is associated with a significantly larger market reaction to negative earnings surprises. We also document that firms with greater analyst coverage are more likely to guide analyst earnings forecasts downwards. Taken together, our evidence suggests that greater analyst coverage raises the pressure on managers to meet analyst earnings forecasts.
| Author | : Guqiang Luo |
| Publisher | : |
| Total Pages | : 0 |
| Release | : 2022 |
| Genre | : |
| ISBN | : |
Download Does the Market Reward Meeting Or Beating Analyst Earnings Forecasts? Empirical Evidence from China Book in PDF, ePub and Kindle
While analyst earnings forecasts are crucial earnings benchmarks in equity valuation, existing studies provide no consensus on whether the market rewards firms for beating analyst earnings expectations. Using a sample of 9,898 firm-year observations from 1,821 unique Chinese listed firms over the period from 2004 to 2019, we document a stock return premium for beating analyst forecasts by a wide margin. However, there is no stock return premium for firms that meet or just beat analyst forecasts, suggesting that the market is skeptical of earnings management by these firms. This market underreaction is more pronounced for firms with weak external monitoring. Further analysis shows that meeting or just beating analyst forecasts is indicative of superior future financial performance. We do not find firms using earnings management to meet or just beat analyst forecasts. Overall, we provide evidence of market underreaction to meeting or just beating analyst forecasts, with the market's over-skepticism of earnings management being a plausible mechanism for this phenomenon.
