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Capital market consequences of managers' voluntary disclosure styles

  • Yang, Holly I.
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    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.

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    File URL: http://www.sciencedirect.com/science/article/pii/S0165410111000590
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    Article provided by Elsevier in its journal Journal of Accounting and Economics.

    Volume (Year): 53 (2012)
    Issue (Month): 1 ()
    Pages: 167-184

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    Handle: RePEc:eee:jaecon:v:53:y:2012:i:1:p:167-184
    Contact details of provider: Web page: http://www.elsevier.com/locate/jae

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