The informativeness of earnings and management's issuance of earnings forecasts

By Clive Lennox, Chul W. Park. 2006

218 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/0fe6fa51dd3b54f4e30bc3bf4c83c884856cfc17

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Weili Ge
2. Qiang Cheng
3. Catherine Schrand
4. Patricia M. Dechow
5. Gerald J. Lobo
6. Gilles Hilary
7. Terry Shevlin
8. Shivaram Rajgopal

In Finance

1. Qiang Cheng
2. Rencheng Wang
3. Guojin Gong
4. Patricia M. Dechow
5. C. Wasley
6. Weili Ge
7. Catherine Schrand
8. Benjamin Segal

In Strategy and Management

1. Weili Ge
2. Qiang Cheng
3. Catherine Schrand
4. Patricia M. Dechow
5. Gerald J. Lobo
6. Gilles Hilary
7. Shane Heitzman
8. Guojin Gong

Citations in the corpus

• Understanding Earnings Quality: A Review of the Proxies, Their Determinants and Their Consequences (2010, background): “62 paper, however, finds that firms are more likely to issue management forecasts of earnings when earnings are more informative (Lennox and Park, 2006).”
• The Bright Side of Managerial Over-Optimism (2016, methodology): “In addition, we follow Lennox and Park (2006) and Gong et al. (2011) to implement a Heckman two-stage procedure.”
• Does the media spotlight burn or spur innovation? (2020, unknown): “We next conduct a falsification test by using future news coverage to predict current patent filings and citations (Lennox and Park, 2006).”
• The perceived credibility of forward-looking performance disclosures (2014, unknown): “This is in line with the empirical evidence of Lennox and Park (2006) who find that firms with higher earnings informativeness issue more frequent earnings forecasts, and Francis et al. (2008) who find that firms with higher earnings quality have higher disclosure scores.”
• Guiding Through the Fog: Financial Statement Complexity and Voluntary Disclosure (2016, unknown): “For the most part, these studies focus on measures of earnings quality and document a positive relation between earnings quality and the incidence, frequency, and accuracy of voluntary disclosure (e.g., Lennox and Park, 2006; Francis et al., 2008; Gong et al., 2009).”
• Societal Trust and Management Earnings Forecasts (2020, background): “As demonstrated by Lennox and Park (2006), managers are more likely to issue earnings forecasts when a firm’s historical earnings response coefficient (ERC) is high, because they anticipate that investors will perceive the earnings information contained in their forecasts as more credible and…”
• The Association Between Management Earnings Forecast Errors and Accruals (2009, background): “21 Lennox and Park (2006) also include analyst forecast revisions of two-period-ahead earnings.”
• The Joint Effects of Materiality Thresholds and Voluntary Disclosure Incentives on Firms' Disclosure Decisions (2010, methodology): “We proxy for the magnitude of the item using the log of (A/S)t–1 and use firm-specific ERCs to proxy for the market’s sensitivity to accounting information (see, e.g., Beatty and Weber, 2006; Lennox and Park, 2006).”
• Managerial Incentives and Management Forecast Precision (2013, background): “10 Noe (1999) find that managers sell more shares after good news than after bad news, and buy more shares after bad news than after good news, suggesting that managers strategically choose the timing of their trading activities to increase insider trading gains.”