Information Technology Capability, Management Forecast Accuracy, and Analyst Forecast Revisions

2018 ◽  
Vol 32 (3) ◽  
pp. 49-70 ◽  
Author(s):  
Feiqi Huang ◽  
He Li ◽  
Tawei Wang
Keyword(s):  
Forecast Accuracy ◽  
Analyst Forecast ◽  
Management Forecasts ◽  
Forecast Revisions ◽  
It Capability ◽  
Management Forecast ◽  
Prior Literature ◽  
Technology Capability ◽  
Information Technology Capability ◽  
The Relationship

SYNOPSISPrior literature has firmly established the relationship between IT capability and firm performance. In this paper, we extend the research in this field and investigate (1) whether IT capability contributes to management forecast accuracy, and (2) whether IT capability improves the informativeness of management forecasts and enhances the extent to which analysts incorporate management forecasts in their revisions. Using firms listed on InformationWeek 500 as our high IT capability group, we empirically demonstrate that firms with high IT capability are able to increase management forecast accuracy, and that analysts incorporate more information from management forecasts in their revisions if the firm has high IT capability.

scholarly journals The Impact of Information Technology Capability on Supply Chain Technology Adoption and Supply Chain Operational Performance: a Resource based View

2018 ◽  
Vol 7 (4.15) ◽  
pp. 224
Author(s):  
Lee Khai Loon ◽  
Gusman Nawanir ◽  
Jalal Hanaysha ◽  
Zahari Abu Bakar
Keyword(s):  
Information Technology ◽  
Supply Chain ◽  
Technology Adoption ◽  
Operational Performance ◽  
Equation Modeling ◽  
Resource Based View ◽  
It Capability ◽  
Technology Capability ◽  
Information Technology Capability ◽  
The Relationship

Organization increasingly relies on the supply chain technology to improve the supply chain operational performance. Yet, past evidence suggests that the adoption of supply chain technology does not guarantee enhanced supply chain operational performance. Drawing from the Resource Based View, this study found that information technology (IT) capability enabled supply chain technology adoption in achieving supply chain operational performance. Supply chain technology serves as a system in transforming IT capability into a higher value resources for an organization. The adoption of supply chain technology in managing supply chain deserved attention from researchers and practitioners, because business benefits from supply chain technology adoption improve firm’s supply chain performances which enhance reliability, improve responsiveness, increase agility, and minimize cost in operation functions. This study provides a unique theoretical framework intended to aid researchers and practitioners develop a more thorough understanding of the linkages between information technology capability, supply chain technology adoption, and supply chain operational performance. The total of 201 questionnaires were sent to Malaysia's textile and apparel company that is listed in the Federation of Malaysian Manufacturers (FMM) and Malaysian External Trade Development Corporation (MATRADE) directory. The total of 121 usable responses were obtained and analyzed through Partial Least Square Structural Equation Modeling (PLS-SEM). The discussion of this study is followed by presenting the results of the survey on the relationship of IT capability on supply chain technology adoption and supply chain operational performance. The results shown that supply chain technology adoption is mediating the relationship between IT capability and supply chain operation performance.  

The moderating role of information technology capability in the relationship between supply chain collaboration and organizational responsiveness

2016 ◽  
Vol 36 (10) ◽  
pp. 1247-1271 ◽  
Author(s):  
Zhao Cai ◽  
Qian Huang ◽  
Hefu Liu ◽  
Liang Liang
Keyword(s):  
Information Technology ◽  
Supply Chain ◽  
Hierarchical Regression ◽  
Supply Chain Collaboration ◽  
Organizational Responsiveness ◽  
Content Type ◽  
It Capability ◽  
Types Of Information ◽  
Information Technology Capability ◽  
The Relationship

Purpose The purpose of this paper is to propose a model to test the relationship between supply chain collaboration (SCC) and organizational responsiveness. Three types of information technology (IT) capability are considered as moderators in this relationship. Design/methodology/approach The study conducted a questionnaire survey of 208 firms from various industries in China. Hierarchical regression analysis was used to test the hypotheses. Findings SCC positively affects organizational responsiveness. Both outside-in and spanning IT capability positively moderates this relationship, whereas inside-out IT capability has a negative moderating effect on this relationship. Originality/value This research extends the knowledge regarding the value creation process of SCC from an organizational learning perspective. The study explores the moderating roles of three types of IT capability in this process and further clarifies the relationship between SCC and organizational responsiveness.

scholarly journals The relationship between director independence, reputation and management earnings forecasts

2008 ◽  
Vol 6 (2) ◽  
pp. 404-419 ◽  
Author(s):  
Howard Chan ◽  
Robert Faff ◽  
Paul Mather ◽  
Alan Ramsay
Keyword(s):  
Audit Committee ◽  
Earnings Forecasts ◽  
Independent Director ◽  
Management Forecasts ◽  
Management Earnings Forecasts ◽  
Governance Environment ◽  
Prior Literature ◽  
The Impact ◽  
Director Independence ◽  
The Relationship

Informative management earnings forecasts potentially reduce information asymmetries in capital markets. We examine the relationship between corporate governance and management earnings forecasts. We extend the prior literature by examining the impact of independent director reputation on characteristics of management forecasts, by refining the previously used proxy for director independence and by distinguishing between routine and non-routine forecasts in the Australian governance environment. We find a significant positive relationship between the likelihood and frequency of firms issuing management earnings forecasts and our measures of audit committee independence and independent director reputation but not board independence. However, there is some evidence that director independence is related to more specific forecasts. These results are driven by routine earnings forecasts over which, it is argued, management have greater discretion.

scholarly journals The Effect of Ex Ante Management Forecast Accuracy on the Post-Earnings-Announcement Drift

2012 ◽  
Vol 87 (5) ◽  
pp. 1791-1818 ◽  
Author(s):  
Li Zhang
Keyword(s):  
Earnings Announcements ◽  
Forecast Accuracy ◽  
Data Availability ◽  
Management Forecasts ◽  
Composite Measure ◽  
Earnings Announcement ◽  
Post Earnings Announcement Drift ◽  
Management Forecast ◽  
Ex Ante

ABSTRACT I examine the effect of ex ante management forecast accuracy on the post-earnings-announcement drift when management forecasts about next quarter's earnings are bundled with current quarter's earnings announcements. I build a composite measure of ex ante management forecast accuracy that takes into account forecast ability, forecast difficulty, and forecast environment. The results show that the bundled forecasts with higher ex ante accuracy mitigate investors' under-reaction to current earnings and reduce the magnitude of the post-earnings-announcement drift. Data Availability: The data used in this paper are available from the sources listed in the text.

Nonfinancial Disclosure and Analyst Forecast Accuracy: International Evidence on Corporate Social Responsibility Disclosure

2012 ◽  
Vol 87 (3) ◽  
pp. 723-759 ◽  
Author(s):  
Dan S. Dhaliwal ◽  
Suresh Radhakrishnan ◽  
Albert Tsang ◽  
Yong George Yang
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Forecast Accuracy ◽  
Data Availability ◽  
Financial Disclosure ◽  
Analyst Forecast ◽  
Nonfinancial Information ◽  
Firm Financial Performance ◽  
Corporate Social ◽  
The Relationship

ABSTRACT We examine the relationship between disclosure of nonfinancial information and analyst forecast accuracy using firm-level data from 31 countries. We use the issuance of stand-alone corporate social responsibility (CSR) reports to proxy for disclosure of nonfinancial information. We find that the issuance of stand-alone CSR reports is associated with lower analyst forecast error. This relationship is stronger in countries that are more stakeholder-oriented—i.e., in countries where CSR performance is more likely to affect firm financial performance. The relationship is also stronger for firms and countries with more opaque financial disclosure, suggesting that issuance of stand-alone CSR reports plays a role complementary to financial disclosure. These results hold after we control for various factors related to firm financial transparency and other potentially confounding institutional factors. Collectively, our findings have important implications for academics and practitioners in understanding the function of CSR disclosure in financial markets. Data Availability: The data are publicly available from the sources identified in the paper.

scholarly journals The Impact of Integrated Reporting on Analysts’ Forecasts

2019 ◽  
Vol 12 (1) ◽  
pp. 76 ◽  
Author(s):  
Romy Bakker ◽  
Georgios Georgakopoulos ◽  
Virginia - Athanasia Sotiropoulou ◽  
Kanellos S. Tountas
Keyword(s):  
Positive Impact ◽  
Forecast Accuracy ◽  
Analyst Forecast ◽  
Forecast Errors ◽  
Integrated Reporting ◽  
Big 4 ◽  
Audit Firms ◽  
Sustainability Disclosure ◽  
The Impact ◽  
The Relationship

Shareholders are very interested in the relationship between Integrated Reporting and analyst forecast accuracy. Integrated Reporting is deemed to reduce information asymmetry between the company and shareholders. The purpose of this paper is to provide evidence on the relationship between Integrated Reporting and analyst forecast accuracy. Analyst forecast accuracy is examined for a global sample of companies that adopted Integrated Reporting, companies that get assurance on Integrated Reporting, companies that receive assurance on their integrated reports by one of the Big 4, and for a south african sample, companies that are mandated to use Integrated Reporting. Information for analysts’ forecasts is retrieved from the I/B/E/S database and information for Integrated Reporting is retrieved from the GRI Sustainability Disclosure Database. We do not find a significant impact of Integrated Reporting on analyst forecast errors. Similarly, attestation of the reports by bigger or smaller audit firms does not seem to affect analysts’ forecast accuracy. In South Africa however, a positive impact on analysts’ forecast accuracy is observed suggesting that the effect of mandatory integrated disclosures is important for analysts’ forecasts.

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