Making Sense of Cents: An Examination of Firms That Marginally Miss or Beat Analyst Forecasts

By Sanjeev Bhojraj, Paul Hribar, Marc Picconi, John M. McInnis. 2009

559 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/836c9e4281db611d0455ce72e9449587b656417d

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Citations in the corpus

Corporate Purpose and Financial Performance (2019, unknown): “2010) and future shareholder value (e.g., Bushee 1998; Bhojraj et al. 2009).”
The effect of financial leverage on real and accrual-based earnings management (2017, result): “In this way, if RM undertaken in relation to levels or changes in leverage is detected with more difficulty than AM, we expect a stronger (negative) association between AM and changes in leverage and market performance, compared to RM, at least in the short run, as firm management is telling the mar”
Trafficking Networks and the Mexican Drug War (2015, background): “These studies examine topics ranging from earnings manipulation (Bollen and Pool, 2009; Bhojraj et al., 2009) to the production of defective products (Krueger and Mas, 2004) to fixing the outcomes of sporting events (Wolfers, 2006; Duggan and Levitt, 2002) to sex-selective abortions in Taiwan (Lin…”
Evidence on the Trade-Off between Real Activities Manipulation and Accrual-Based Earnings Management (2012, background): “Bhojraj et al. (2009), on the other hand, show that firms that beat analyst forecasts by using real and accrual earnings management have worse operating performance and stock market performance in the subsequent three years than firms that miss analyst forecasts without earnings management.”
The Real Effects of Real Earnings Management: Evidence from Innovation (2018, background): “Given the broader literature on the consequences of real activities manipulation (e.g., Bhojraj et al. 2009; Gunny 2010), we focus on a particular manifestation and associated consequence to provide new insights about REM.”
Substitution between Real and Accruals-Based Earnings Management after Voluntary Adoption of Compensation Clawback Provisions (2015, unknown): “, Bhojraj et al. 2009; Cohen and Zarowin 2010) that show that real transactions management decreases long-term firm value as it represents a deviation from optimal operating decisions. Our study has implications for the mandatory clawback provisions recently implemented under DFA 954. Complementing ”
Understanding Earnings Quality: A Review of the Proxies, Their Determinants and Their Consequences (2010, background): “Bhojraj et al. (2009) find that firms that just beat analyst forecasts by using accruals or by cutting discretionary expenses experience short-term stock performance improvement.”
The Effect of Cash Flow Forecasts on Accrual Quality and Benchmark Beating (2011, background): “Brown and Caylor (2005) find that: (1) the tendency of firms to avoid reporting negative earnings surprises has been increasing over time and (2) analysts’ earnings expectations now represent the most important threshold firms seek to exceed.”
Share Repurchases as a Potential Tool to Mislead Investors (2010, unknown): “Moreover, Bhojraj et al. (2009) find that low earnings quality firms which beat analyst forecasts, even marginally, enjoy short-term stock price benefits by cutting discretionary expenditures.”
Can Innovation Help U.S. Manufacturing Firms Escape Import Competition from China? (2015, unknown): “as in Sutton (1991)’s theory or R&D, rather than through lower costs, as in Grossman and Helpman (1991) and Aghion and Howitt (1992)’s models of innovation.”
Earnings management and annual report readability (2017, unknown): “In other words, we expect that when reported performance differs from underlying fundamentals, we expect managers to try to make it harder for investors to identify such earnings management behavior, in line with the “Incomplete Revelation Hypothesis” (Bloomfield, 2002).”
The Real Effects of Mandatory Quarterly Reporting (2017, background): “Due to information asymmetries, managers experience pressure to meet/beat these targets to avoid a decrease of stock prices when these targets are not met (Bhojraj et al. 2009).”
Determinants of Corporate Cash Policy: Insights from Private Firms (2013, unknown): “It is worth noting that the private firms in our sample are large firms with some access and/or intend to gain access to the public debt market, and are more comparable to public firms than are the private firms as examined by Brav (2009), Asker et al.”
Internal Governance and Real Earnings Management (2016, background): “Consistent with this notion, Bhojraj et al. (2009), Leggett et al.”
Abnormal real operations, real earnings management, and subsequent crashes in stock prices (2014, unknown): “Consistently, Bhojraj et al. (2009) find that firms that use DRO to beat analysts’ forecasts underperform those that do not use DRO but miss the targets.”