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Assessing methods of identifying management forecasts: CIG vs. researcher collected

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  • Chuk, Elizabeth
  • Matsumoto, Dawn
  • Miller, Gregory S.

Abstract

This paper examines the characteristics of management forecasts available on Thomson First Call’s Company Issued Guidance (CIG) database relative to a sample of forecasts hand-collected through a search of company press releases. Due to the significantly lower cost of using CIG (relative to hand-collecting data), academics have increasingly relied on this database as a source of management forecasts. However, it is important for researchers to consider the properties of this database (such as coverage, accuracy, and breadth) when evaluating whether it is an appropriate data source for their study. Overall, our results suggest systematic differences between forecasts reported on CIG and forecasts gathered from company press releases. We suggest several sample criteria that will remove or mitigate these biases.

Suggested Citation

  • Chuk, Elizabeth & Matsumoto, Dawn & Miller, Gregory S., 2013. "Assessing methods of identifying management forecasts: CIG vs. researcher collected," Journal of Accounting and Economics, Elsevier, vol. 55(1), pages 23-42.
    • Handle: RePEc:eee:jaecon:v:55:y:2013:i:1:p:23-42
    DOI: 10.1016/j.jacceco.2012.07.001
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    References listed on IDEAS

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    More about this item

    Keywords

    CIG; Forecasts; Management guidance; Accounting disclosure;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General

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