Online Appendix for: Management of Reported and Forecast EPS, Investor Responses, and Research Implications
Management Science, Forthcoming
11 Pages Posted: 26 Jul 2017
Date Written: March 27, 2017
This is the Online Appendix for: Management of reported and forecast EPS, investor responses, and research implications (Management Science, Forthcoming).
We provide here additional results relating to four issues discussed in the main paper:
a) robustness analysis regarding prediction P3.2, which compares the use of accruals by US and Japanese firms to smooth reported EPS;
b) robustness analysis regarding prediction P3.3, which compares ERC or investor responses to forecast errors for US and Japanese firms;
c) an extension of the analyses in Table 5 of the main paper, relating to replications of Thomas (2002); and
d) descriptive results relating to scale variation in the first moment of forecast error distributions, referred to as CT#1.
While we present results for all four analyses, we provide no discussion for the third issue, as it is fully described in the main paper.
Keywords: EPS forecast errors, earnings management, forecast guidance, scale deflation, and earnings response coefficients
JEL Classification: G14, G34, M41
Suggested Citation: Suggested Citation