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Speaking of the short-term: disclosure horizon and managerial myopia

Author

Listed:
  • Francois Brochet

    (Boston University)

  • Maria Loumioti

    (University of Southern California)

  • George Serafeim

    (Harvard Business School)

Abstract

We study conference calls as a voluntary disclosure channel and create a proxy for the time horizon that senior executives emphasize in their communications. We find that our measure of disclosure time horizon is associated with capital market pressures and executives’ short-term monetary incentives. Consistent with the language emphasized during conference calls partially capturing short-termism, we show that our proxy is associated with earnings and real activities management. Overall, the results show that the time horizon of conference call narratives can be informative about managers’ myopic behavior.

Suggested Citation

  • Francois Brochet & Maria Loumioti & George Serafeim, 2015. "Speaking of the short-term: disclosure horizon and managerial myopia," Review of Accounting Studies, Springer, vol. 20(3), pages 1122-1163, September.
    • Handle: RePEc:spr:reaccs:v:20:y:2015:i:3:d:10.1007_s11142-015-9329-8
    DOI: 10.1007/s11142-015-9329-8
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    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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