Abstract

http://ssrn.com/abstract=1545864
 
 

References (68)



 
 

Citations (3)



 


 



Guidance Frequency and Guidance Properties: The Effect of Reputation-Building and Learning-by-Doing


Sanjeev Bhojraj


Cornell University - Samuel Curtis Johnson Graduate School of Management

Robert Libby


Cornell University - Samuel Curtis Johnson Graduate School of Management

Holly Yang


Singapore Management University - School of Accountancy

March 31, 2011

Johnson School Research Paper Series No. 12-2010

Abstract:     
Different firms issue earnings guidance at dramatically different rates. We suggest that frequent guiders more likely represent a type of firm that is attempting to develop a reputation for enhanced disclosures through their guidance issuances. Furthermore, the desire to build a reputation and the opportunities to learn provided by issuing more frequent guidance should translate into frequent guiders providing higher quality guidance than occasional guiders. We examine our hypotheses in three stages. First, we find that guidance frequency is positively correlated with variables associated with reputation with capital market participants and reputation in product and labor markets. Second, our cross-sectional analysis shows that frequent guiders provide guidance that is more accurate and specific, timelier, and less optimistically biased. Third, controlling for overall time trends, we find that firms display improvements over time in their guidance properties. Overall, our results are consistent with the reputation-building and learning-by-doing arguments.

Number of Pages in PDF File: 51

Keywords: management forecasts, earnings guidance, guidance frequency, learning

working papers series


Download This Paper

Date posted: February 1, 2010 ; Last revised: June 11, 2014

Suggested Citation

Bhojraj, Sanjeev and Libby, Robert and Yang, Holly, Guidance Frequency and Guidance Properties: The Effect of Reputation-Building and Learning-by-Doing (March 31, 2011). Johnson School Research Paper Series No. 12-2010. Available at SSRN: http://ssrn.com/abstract=1545864 or http://dx.doi.org/10.2139/ssrn.1545864

Contact Information

Sanjeev Bhojraj
Cornell University - Samuel Curtis Johnson Graduate School of Management ( email )
Department of Accounting
Ithaca, NY 14853
United States
607-255-4069 (Phone)
607-254-4590 (Fax)
Robert Libby
Cornell University - Samuel Curtis Johnson Graduate School of Management ( email )
Ithaca, NY 14853
United States
607-255-3348 (Phone)
607-254-4590 (Fax)
Holly Yang (Contact Author)
Singapore Management University - School of Accountancy ( email )
60 Stamford Road
Singapore 178900
Singapore

Feedback to SSRN


Paper statistics
Abstract Views: 2,960
Downloads: 655
Download Rank: 20,972
References:  68
Citations:  3
People who downloaded this paper also downloaded:
1. CEO Overconfidence and Management Forecasting
By Paul Hribar and Holly Yang

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.406 seconds