Moving Forward: Management Guidance and Earnings Announcement Returns

2020 ◽  
Author(s):  
Yao Lu ◽  
Douglas J. Skinner
Keyword(s):  
Earnings Announcement ◽  
Announcement Returns ◽  
Management Guidance

SKEWNESS AND THE ASYMMETRY IN EARNINGS ANNOUNCEMENT RETURNS

2015 ◽  
Vol 38 (2) ◽  
pp. 145-168
Author(s):  
Benjamin M. Blau ◽  
J. Michael Pinegar ◽  
Ryan J. Whitby
Keyword(s):  
Earnings Announcement ◽  
Announcement Returns ◽  
The Asymmetry

Pre-earnings announcement returns and momentum

2020 ◽  
Vol 196 ◽  
pp. 109521
Author(s):  
Archana Jain ◽  
Chinmay Jain ◽  
Revansiddha Basavaraj Khanapure
Keyword(s):  
Earnings Announcement ◽  
Announcement Returns

Does the Form of Management's Earnings Guidance Affect Analysts' Earnings Forecasts? (Retracted)

2006 ◽  
Vol 81 (1) ◽  
pp. 207-225 ◽  
Author(s):  
Robert Libby ◽  
Hun-Tong Tan ◽  
James E. Hunton
Keyword(s):  
Narrow Range ◽  
Earnings Forecasts ◽  
Point Estimate ◽  
Earnings Guidance ◽  
Earnings Announcement ◽  
Wide Range ◽  
Information Precision ◽  
Management Guidance ◽  
Psychology Literature ◽  
Relationship Of

This study examines how the form of management's earnings guidance (point, narrow range, wide range) affects analysts' earnings forecasts. Results from two experiments demonstrate that: (1) guidance form has no effect on analysts' forecasts made immediately after the guidance; and (2) after the actual earnings announcement, guidance form and the relationship of the earnings guidance to actual earnings (guidance error) interact in their effect on analysts' forecasts. After the actual earnings announcement, guidance error leads to higher (lower) analysts' forecasts for firms with downwardly (upwardly) biased guidance; this effect of guidance error is magnified by a narrow range and reduced by a wide range, compared to a point estimate. These results suggest that treating the mean of the range endpoints as equivalent to a point estimate and failing to consider effects after the release of actual earnings may paint an incomplete picture of how management guidance affects analysts and investors. It also offers useful information to managers who issue earnings guidance, and presents a challenge to the psychology literature regarding the effects of information precision on judgment and decision making.

Investor Demand for Sell-Side Research

2016 ◽  
Vol 92 (2) ◽  
pp. 123-149 ◽  
Author(s):  
Alastair Lawrence ◽  
James P. Ryans ◽  
Estelle Y. Sun
Keyword(s):  
Earnings Announcements ◽  
Financial Statement ◽  
Earnings Announcement ◽  
Management Guidance ◽  
Analyst Estimates ◽  
Jel Classifications

ABSTRACT We use daily page views of analyst estimates, ratings, and target prices on Yahoo Finance to understand when users seek sell-side analyst research. Demand for this information is most pronounced on days with earnings announcements, management guidance, and All-Star analyst reports. Surprisingly, demand does not increase at Form 10-K and Form 10-Q filings. While the overall demand for analyst estimates is 19.9 percent less than for analyst ratings and target prices, on earnings announcement and management guidance days, this preference is reversed. Moreover, the demand for analyst information substantially trumps that of SEC filings and financial statement information. JEL Classifications: M41; G14; G24.

Employee Flexibility, Exogenous Risk, and Firm Value

2019 ◽  
pp. 1-32 ◽  
Author(s):  
Shiu-Yik Au ◽  
Ming Dong ◽  
Andreanne Tremblay
Keyword(s):  
Stock Returns ◽  
Firm Value ◽  
Textual Analysis ◽  
Policy Uncertainty ◽  
Earnings Announcement ◽  
Exogenous Shocks ◽  
Announcement Returns ◽  
Workforce Flexibility ◽  
External Risk ◽  
High Flexibility

We hypothesize that employee flexibility enhances firm value by helping firms respond to exogenous shocks. We estimate employee-flexibility scores through textual analysis of online job reviews, and we find that a high flexibility score leads to superior stock returns for firms exposed to external risk. During 2011–2017, the value-weighted hedge portfolio formed on employee flexibility earned a 5-factor annualized alpha of 9.5% during periods of high policy uncertainty. Earnings-announcement returns also suggest that investors do not fully value workforce flexibility. These results indicate that employee flexibility is a valuable corporate intangible that helps firms to manage risk during uncertain times.

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