CEO ability and management earnings forecasts

By Bok Baik, David B. Farber, S. Lee. 2011

461 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/6a811c5936813c5b008df72b59a0235667451f3d

How researchers see this paper

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

In Accounting

In Strategy and Management

Citations in the corpus

The Role of Managerial Ability in Corporate Tax Avoidance (2017, unknown): “First, accounting-based measures similar to pretax return on assets have been used as proxies for managerial ability (e.g., Baik et al. 2011).”
CEO's financial experience and earnings management (2013, background): “Studies have recognized the effect of other CEO characteristics, such as age, tenure, educational experience, and gender, on corporate financial policies (Alderfer, 1986; Dechow and Sloan, 1991; Francis et al., 2008; Baik et al., 2011; Hazarika et al., 2012).”
Employee Quality and Financial Reporting Outcomes (2017, unknown): “For example, Bowen et al. (2010) find that employee whistleblowing events are associated with negative stock price reactions, future earnings restatements, subsequent lawsuits, and poor future firm performance.”
Quantifying Managerial Ability: A New Measure and Validity Tests (2012, background): “17 Note that the correlation is positive in Baik et al. (2011); however, their sample is constrained to large firms with Execucomp and First Call coverage, and it is likely that larger firms garner more media attention, holding managerial ability constant.”
CEO age and stock price crash risk (2017, background): “When stockpiling reaches a critical threshold level, it becomes too costly for managers or even impossible to continue withholding the accumulated negative information (Baik et al., 2011).”
Managerial Ability and Earnings Quality (2013, methodology): “We also obtain several datasets made available by researchers, including managerial ability from Demerjian et al. (2012), media citations from Baik et al. (2011), restatements from Hennes et al. (2008) and Plumlee and Yohn (2010), and internal control quality data from Doyle et al. (2007).”
Financial Reporting Quality and Labor Investment Efficiency (2014, unknown): “15 In untabulated analysis, we also use alternative proxies for managerial ability based on press citations and industry-adjusted ROA during a specific CEO’s tenure, as in Baik et al. (2011) (we thank Sam Lee for providing us with the data from Baik et al.”
Managerial ability and real earnings management (2017, background): “Baik, Farber, and Lee (2011) find a positive relation between CEO ability and management earnings forecasts' frequency and accuracy.”
The influence of individual executives on corporate financial reporting: A review and outlook from the perspective of upper echelons theory (2016, background): “As an alternative measure of economic signi ﬁ cance, Baik et al. (2011) discuss the magnitude of changes when moving between different quartiles of CEO ability.”
Management Forecast Quality and Capital Investment Decisions (2014, unknown): “To assess the quality of management earnings forecasts, we focus on forecast accuracy following prior literature (Baik et al. 2011; Bamber et al. 2010; Feng et al. 2009; Hirst et al. 2008).”
Readability of Narrative Disclosures in 10-K Reports: Does Managerial Ability Matter? (2018, unknown): “For example, Baik et al. (2011) show that more able CEOs make more frequent and more accurate forecasts to signal a firm’s underlying economics and that the market becomes more responsive to the news in management forecasts made by more able CEOs.”
Does managerial ability facilitate corporate innovative success (2015, unknown): “(2008), and Baik et al. (2011). The first of these two measures is an indicator variable equal to one if the CEO is recognized as one of the “top” CEOs in calendar year t.”
Managerial Ability and Income Smoothing (2019, unknown): “…superior skill to anticipate changes in their firms’ underlying economics, to estimate accruals (Demerjian et al. 2013), and to forecast earnings (Baik et al. 2011), we expect that smoothing by high ability managers incorporates more forward-looking information (i.e., future cash flows) into…”
The impact of top executive gender on asset prices: Evidence from stock price crash risk (2019, unknown): “However, when bad news stockpiled within the firm reaches a tipping point, the costs of hoarding bad news will exceed the benefits of doing so (Baik et al., 2011).”