Abstract

http://ssrn.com/abstract=1753443
 
 

References (23)



 


 



An Empirical Analysis of Qualitative Management Earnings Forecasts


Michael Ofosu Mensah


affiliation not provided to SSRN

Hong V. Nguyen


University of Scranton

Huldah A. Ryan


affiliation not provided to SSRN

June 28, 2008

Journal of Business Finance & Accounting, Vol. 23, Issue 9-10, pp. 1245-1265, 2008

Abstract:     
Despite efforts by the Securities and Exchange Commission (SEC) to encourage corporate disclosure of quantitative management earnings projections, only a small fraction of firms voluntarily do so. Instead of quantitative estimates, a large number of firms choose to disclose qualitative (verbal) assessments of their earnings prospects. This paper is a study of the information characteristics and the usefulness of this alternative form of forecast disclosure to investors. The study examines a sample of qualitative forecast statements from the 19791985 period and finds associations between these forecasts and percentage changes in realized earnings per share, the direction of financial analysts' forecast revisions following the disclosure of these forecasts, and abnormal stock returns on the date of their disclosure. These associations are, however, shown to be more significant for negative (bad news) than for positive (good news) forecasts.

Number of Pages in PDF File: 21

Keywords: management forecasts, qualitative statements, usefulness, analysts' forecast revisions, forecast accuracy

Accepted Paper Series


Date posted: February 2, 2011  

Suggested Citation

Mensah, Michael Ofosu and Nguyen, Hong V. and Ryan, Huldah A., An Empirical Analysis of Qualitative Management Earnings Forecasts (June 28, 2008). Journal of Business Finance & Accounting, Vol. 23, Issue 9-10, pp. 1245-1265, 2008. Available at SSRN: http://ssrn.com/abstract=1753443 or http://dx.doi.org/10.1111/1468-5957.00078

Contact Information

Michael Ofosu Mensah (Contact Author)
affiliation not provided to SSRN
No Address Available
Hong V. Nguyen
University of Scranton ( email )
320 Madison Avenue
Scranton, PA 18510
United States
Huldah A. Ryan
affiliation not provided to SSRN
No Address Available
Feedback to SSRN


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References:  23

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