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Capital market consequences of managers' voluntary disclosure styles

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  • Yang, Holly I.

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.

Suggested Citation

  • Yang, Holly I., 2012. "Capital market consequences of managers' voluntary disclosure styles," Journal of Accounting and Economics, Elsevier, vol. 53(1), pages 167-184.
  • Handle: RePEc:eee:jaecon:v:53:y:2012:i:1:p:167-184
    DOI: 10.1016/j.jacceco.2011.08.003
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    References listed on IDEAS

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