Journal of Accounting and Economics Vol. 53 No. 1-2 2012
Capital market consequences of managers' voluntary disclosure styles
Abstract
This paper studies the capital market consequences of managers establishing an individual forecasting style. Using a manager-firm matched panel dataset, I examine whether and when manager-specific credibility matters. If managers' forecasting styles affect their perceived credibility, then the stock price reaction to forecast news should increase with managers' prior forecasting accuracy. Consistent with this prediction, I find that the stock price reaction to management forecast news is stronger when information uncertainty is high and when the manager has a history of issuing more accurate forecasts, indicating that individual managers benefit from establishing a personal disclosure reputation.
- DOI
- 10.1016/j.jacceco.2011.08.003
- Volume
- 53
- Issue
- 1-2
- Pages
- 167-184
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref