Earnings Forecasts of Female CEOs: Quality and Consequences

Review of Accounting Studies, Forthcoming https://doi.org/10.1007/s11142-021-09669-7

69 Pages Posted: 22 Jul 2021 Last revised: 1 Apr 2022

See all articles by Claude Francoeur

Claude Francoeur

HEC Montréal

Yuntian Li

affiliation not provided to SSRN

Zvi Singer

HEC Montreal

Jing Zhang

university of Colorado Denver

Date Written: July 21, 2021

Abstract

This study examines the voluntary disclosure of earnings forecasts by female CEOs.
We find that in the backdrop of increased pressure to perform from investors and other
stakeholders, female CEOs tend to issue more earnings forecasts than male CEOs, and
those forecasts are more accurate. We also find that while financial analysts generally
prefer to follow companies headed by male CEOs, female CEOs’ efforts to issue
accurate earnings forecasts pay off, as these efforts help them close the analyst coverage
gap. We provide complementary evidence on the disclosure efforts of female CEOs
with regard to updates to the forecast and the 10-K report. Lastly, we show that
financial analysts rely more on the earnings forecasts of female CEOs, possibly because
they recognize female CEOs’ superior forecasting quality. Our results are robust to the
use of alternative research designs, including difference-in-difference, propensity score
matching, and entropy balancing. Overall, our study documents gender differences in
voluntary disclosure by senior management.

Keywords: Female CEO; voluntary disclosure; management forecast; management forecast errors; analyst following; analyst forecasts

JEL Classification: D22, G17, M14, M41

Suggested Citation

Francoeur, Claude and Li, Yuntian and Singer, Zvi and Zhang, Jing, Earnings Forecasts of Female CEOs: Quality and Consequences (July 21, 2021). Review of Accounting Studies, Forthcoming https://doi.org/10.1007/s11142-021-09669-7, Available at SSRN: https://ssrn.com/abstract=3890538 or http://dx.doi.org/10.2139/ssrn.3890538

Claude Francoeur

HEC Montréal ( email )

3000, Chemin de la Côte-Sainte-Catherine
Montreal H3T 2A7, Quebec
Canada

Yuntian Li

affiliation not provided to SSRN

Zvi Singer (Contact Author)

HEC Montreal ( email )

3000, Chemin de la Côte-Sainte-Catherine
Montreal, Quebec H2X 2L3
Canada
514-340-1847 (Phone)

Jing Zhang

university of Colorado Denver ( email )

1475 Lawrence St
Denver, CO
Denver, CO 80202
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
90
Abstract Views
551
Rank
422,791
PlumX Metrics