Short-term earnings guidance and accrual-based earnings management

• Main Authors: Call, Andrew C., Chen, Shuping, Miao, Bin, Tong, Yen Hee
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2014
• Subjects: DRNTU::Business::Accounting::Profit
• Online Access: https://hdl.handle.net/10356/103866; http://hdl.handle.net/10220/20031
• Institution: Nanyang Technological University

Motivated by recent practitioners’ concerns that short-term earnings guidance leads to managerial myopia, we investigate the impact of short-term earnings guidance on earnings management. Using a propensity-score matched control sample, we find strong and consistent evidence that the issuance of sho...