Confirming Management Earnings Forecasts, Earnings Uncertainty, and Stock Returns

By Michael B. Clement, Richard M. Frankel, J. Miller. 2003

191 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/a9b52b615ce0cd8fd7b1fdd59cb4132dbf8d1a88

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Citations in the corpus

• Does Earnings Guidance Affect Market Returns? The Nature and Information Content of Aggregate Earnings Guidance (2007, unknown): “22 Clement et al. (2003) find a statistically significant but small positive reaction (mean of 0.7%, median of 0.3”
• Incentives for Risk Reporting - A Discretionary Disclosure and Cheap Talk Approach (2008, background): “Further research surveyed by Combes-Thuélin et al. (2006) documents restricted risk disclosures in special settings with large political and environmental risk exposure.”
• Textual risk disclosures and investors’ risk perceptions (2013, unknown): “Increases in risk disclosures are also associated with more dispersed forecast revisions around the filings.”
• Analyst Information Discovery and Interpretation Roles: A Topic Modeling Approach (2018, unknown): “We find positive and significant coefficients for all tone variables, i.e., _ , _ , and                                                              26 In a similar vein, Clement et al. (2003) show that management earnings forecasts that confirm market expectation provide value to investors and…”
• Managerial Incentives and Management Forecast Precision (2013, methodology): “Following prior research (e.g., Clement et al. 2003; Rogers and Van Buskirk 2011), we treat management forecasts with forecast news of a small magnitude as neutral forecasts.”
• A re-examination of analysts’ superiority over time-series forecasts of annual earnings (2012, unknown): “For example, Lee (1992), Clement et al. (2003), and Jegadeesh and Livnat (2006) use analysts’ forecasts to proxy for earnings expectations for small firms, which are not represented in the early studies of analysts’ versus time-series forecasts.”
• The Market Reward for Achieving Analyst Earnings Expectations: Does Managing Expectations or Earnings Matter? (2011, unknown): “Clement et al. (2003) find that management earnings forecasts that confirm market perceptions reduce analyst forecast dispersion, inducing an upward market response. Hutton (2005) finds that the main incentives for private forecast guidance before Regulation FD were high capital market intermediatio”
• Earnings Guidance and Market Uncertainty (2009, unknown): “Prior research suggests that “confirming” forecasts tend to result in decreases in analyst dispersion (Clement et al., 2003).”