Is silence golden? An empirical analysis of firms that stop giving quarterly earnings guidance

By Shuping Chen, Dawn A. Matsumoto, Shivaram Rajgopal. 2005

328 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/0008b2867219ddaf5cd583d2bbe288559ebb9699

Citations in the corpus

• Management Earnings Forecasts and Other Forward-Looking Statements (2017, unknown): “Our list corresponds to the terms used by Jennings (1987), Pownall et al. (1993), Skinner (1994), and Chen et al. (2011).17 Moreover, our list performs well in identifying forecasts included in the First Call CIG dataset typically used as a source of management earnings forecasts, which we test as…”
• On Guidance and Volatility (2015, unknown): “Prior work indicates that managers tend to disclose more frequently when earnings are less volatile (Waymire 1985) and easier to predict (Chen, Matsumoto, and Rajgopal 2011).”
• Narrative Disclosure and Earnings Performance: Evidence from R&D Disclosures (2014, unknown): “Although prior studies generally document a positive relation between earnings performance and the frequency of earnings-related disclosures (Miller 2002; Chen et al. 2011; Houston et al. 2010), this finding will not necessarily hold for narrative R&D disclosure given the unique characteristics of R”
• Value Destruction and Financial Reporting Decisions (2006, unknown): “Recent research by Chen, Matsumoto, and Rajgopal (2006), however, that investigated the antecedents and consequences of 76 announcements of the end of quarterly EPS guidance concluded that poor past stock return and operating performance, not a desire to get the market to focus on the long term,…”
• Earnings Guidance and Market Uncertainty (2009, unknown): “13 For example, see Houston et al. (2007) and Chen et al. (2006).”
• The composition of top management with general counsel and voluntary information disclosure (2012, unknown): “The change in the rate of return on total assets (CROA) controls for earnings performance change, which is positively related to firms’ disclosure decisions (e.g., Lang and Lundholm, 1993; Chen et al., 2011).”
• To Guide Or Not to Guide? Causes and Consequences of Stopping Quarterly Earnings Guidance (2008, unknown): “A major difference between our study and Chen et al. (2006) is that they focus on stoppers that have publicly announced the policy change, while we examine all stoppers.”
• Analyst Information Discovery and Interpretation Roles: A Topic Modeling Approach (2018, unknown): “Empirical studies generally support this theory (e.g., Lang and Lundholm 1993; Miller 2002; Chen et al. 2011).”
• The Effect of Trade Secrets Law on Stock Price Synchronicity: Evidence from the Inevitable Disclosure Doctrine (2020, unknown): “One implication of this theory is that when managers are less certain about their business, they disclose less (Chen, Matsumoto, and Rajgopal 2011).”
• Board interlocks and the diffusion of disclosure policy (2014, unknown): “…with this view, recent evidence suggests that firms that stop offering quarterly earnings guidance tend to have poor prior performance and, on average, experience negative consequences, such as increases in analyst forecast error and forecast dispersion (Houston et al. 2010; Chen et al. 2011).”