Assessing Methods of Identifying Management Forecasts: CIG vs. Researcher Collected

54 Pages Posted: 2 Mar 2010 Last revised: 29 Jun 2012

See all articles by Elizabeth Chuk

Elizabeth Chuk

University of California, Irvine - Paul Merage School of Business

Dawn A. Matsumoto

University of Washington - Department of Accounting

Gregory S. Miller

University of Michigan, Stephen M. Ross School of Business

Date Written: June 25, 2012

Abstract

This paper examines the characteristics of management forecasts available on Thomson First Call’s Company Issued Guidance (CIG) database relative to a sample of forecasts hand-collected through a search of company press releases. Due to the significantly lower cost of using CIG (relative to hand-collecting data), academics have increasingly relied on this database as a source of management forecasts. However, it is important for researchers to consider the properties of this database (such as coverage, accuracy, and breadth) when evaluating whether it is an appropriate data source for their study. Overall, our results suggest systematic differences between forecasts reported on CIG and forecasts gathered from company press releases. We suggest several sample criteria that will remove or mitigate these biases.

Suggested Citation

Chuk, Elizabeth and Matsumoto, Dawn and Miller, Gregory S., Assessing Methods of Identifying Management Forecasts: CIG vs. Researcher Collected (June 25, 2012). Available at SSRN: https://ssrn.com/abstract=1446978 or http://dx.doi.org/10.2139/ssrn.1446978

Elizabeth Chuk (Contact Author)

University of California, Irvine - Paul Merage School of Business ( email )

University of California, Irvine
Irvine, CA California 92697-3125
United States

Dawn Matsumoto

University of Washington - Department of Accounting ( email )

224 Mackenzie Hall, Box 353200
Seattle, WA 98195-3200
United States
206-543-4454 (Phone)
206-685-9392 (Fax)

Gregory S. Miller

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109
United States

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