Abstract

http://ssrn.com/abstract=572221
 
 

References (34)



 
 

Citations (8)



 


 



Is Guidance a Macro Factor? the Nature and Information Content of Aggregate Earnings Guidance


Carol Anilowski Cain


Wake Forest University

Mei Feng


University of Pittsburgh - Katz Graduate School of Business

Douglas J. Skinner


The University of Chicago - Booth School of Business


AAA 2005 FARS Meeting Paper
Journal of Accounting & Economics (JAE), Forthcoming

Abstract:     
Although a great deal of research documents the information content of management earnings forecasts at the firm level, there is little research on the informativeness of aggregate earnings guidance. We argue that aggregate earnings guidance is potentially informative at the market/economy level through its effects on expectations about market-level expected future cash flows and expected returns. We find that aggregate guidance, especially relative levels of quarterly downward guidance, is associated with analyst- and time-series-based measures of aggregate earnings news. We also find some evidence that guidance - again, largely downward guidance - is associated with market returns.

Number of Pages in PDF File: 53

Keywords: Earnings guidance, management earnings forecasts

JEL Classification: G12, G14, M41, G29

Accepted Paper Series


Download This Paper

Date posted: August 4, 2005  

Suggested Citation

Anilowski Cain, Carol and Feng, Mei and Skinner, Douglas J., Is Guidance a Macro Factor? the Nature and Information Content of Aggregate Earnings Guidance. AAA 2005 FARS Meeting Paper; Journal of Accounting & Economics (JAE), Forthcoming. Available at SSRN: http://ssrn.com/abstract=572221

Contact Information

Carol Anilowski Cain
Wake Forest University ( email )
2601 Wake Forest Road
Winston-Salem, NC 27109
United States
Mei Feng
University of Pittsburgh - Katz Graduate School of Business ( email )
Pittsburgh, PA 15260
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)

Chicago Booth School of Business Logo

Feedback to SSRN


Paper statistics
Abstract Views: 3,460
Downloads: 742
Download Rank: 17,481
References:  34
Citations:  8

© 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 0.531 seconds