The effects of guidance frequency and guidance goal on managerial decisions

• Main Authors: Wang, Elaine Ying, Tan, Hun-Tong
• Other Authors: Nanyang Business School
• Format: Article
• Language: English
• Published: 2013
• Subjects: DRNTU::Business::Accounting
• Online Access: https://hdl.handle.net/10356/99633; http://hdl.handle.net/10220/17381
• Institution: Nanyang Technological University

We conduct an experiment to examine the effects of guidance frequency (frequent vs. infrequent) and guidance goal (accuracy vs. meet/beat vs. truthful) on managers’ operating decisions. We find that frequent guiders sacrifice total earnings for quarterly earnings predictability irrespective of their...