An experimental investigation of investors' and analysts' reactions to management guidance.

• Main Authors: Tan, Hun Tong., Libby, Robert., Hunton, James E.
• Other Authors: Nanyang Business School
• Format: Research Report
• Language: English
• Published: 2008
• Subjects: DRNTU::Business::Finance
• Online Access: http://hdl.handle.net/10356/14219
• Institution: Nanyang Technological University

This study examines how the form of managements’ earnings guidance (point, narrow range, wide range) affects analysts’ earnings forecasts. Results from two experiments demonstrate that: (1) guidance form has no effect on analysts’ forecasts made immediately after the guidance; and (2) after the act...