Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1006694 | Research in Accounting Regulation | 2011 | 5 Pages |
Abstract
Firms are pressured to meet or beat analysts’ expectations (MBE) to avoid being penalized by the market. Some firms sporadically MBE while other firms are able to consistently, or habitually, MBE. This study is an exploratory attempt to investigate how habitual MBE firms are different from firms that sporadically MBE, and whether regulation FD and the Sarbanes–Oxley Act have affected firms’ ability to habitually MBE in the post regulation periods. We find that habitual MBE firms are different than sporadic MBE firms, and that they use strategies less to MBE than sporadic MBE firms. Furthermore, it has become more difficult for firms to habitually MBE in the post-regulation periods.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
Jan L. Williams, Huey-Lian Sun,