Abstract

http://ssrn.com/abstract=449380
 
 

Citations



 


 



The Role of Supplementary Statements with Management Earnings Forecasts


Amy P. Hutton


Boston College - Carroll School of Management

Gregory S. Miller


University of Michigan, Stephen M. Ross School of Business

Douglas J. Skinner


The University of Chicago - Booth School of Business


Tuck Business School Working Paper No. 03-29; Harvard NOM Working Paper No. 03-53

Abstract:     
We investigate managers' decisions to supplement their firms' management earnings forecasts. We classify these supplementary disclosures as either qualitative "soft talk" disclosures or verifiable forward-looking statements. We find that managers provide "soft talk" disclosures with similar frequency for good and bad news forecasts, but are more likely to supplement good news forecasts with verifiable forward-looking statements. We examine the market response to these forecasts and find that bad news earnings forecasts are always informative but that good news forecasts are informative only when supplemented by verifiable forward-looking statements, suggesting that these statements bolster the credibility of good news forecasts.

Keywords: disclosure, earnings forecasts, forward-looking statements

JEL Classification: M41, M45

Accepted Paper Series





Not Available For Download

Date posted: October 3, 2003  

Suggested Citation

Hutton, Amy P. and Miller, Gregory S. and Skinner, Douglas J., The Role of Supplementary Statements with Management Earnings Forecasts. Journal of Accounting Research, Vol. 41, No. 5, December 2003. Available at SSRN: http://ssrn.com/abstract=449380

Contact Information

Amy P. Hutton
Boston College - Carroll School of Management ( email )
140 Commonwealth Avenue
Chestnut Hill, MA 02467
United States
617 552 1951 (Phone)
Gregory S. Miller
University of Michigan, Stephen M. Ross School of Business ( email )
701 Tappan Street
Ann Arbor, MI MI 48109
United States
Douglas J. Skinner (Contact Author)
The University of Chicago - Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773-702-7137 (Phone)

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