Management Earnings Guidance and Stock Price Crash Risk

• Main Authors: HAMM, Sophia J. W., NG, Jeffrey, LI, Edward E.
• 格式: text
• 語言: English
• 出版: Institutional Knowledge at Singapore Management University 2012
• 主題: financial reporting transparency; corporate governance; financial crisis; Accounting; Corporate Finance
• 在線閱讀: https://ink.library.smu.edu.sg/soa_research/1008; http://www.rieb.kobe-u.ac.jp/tjar/conference/3rd/1P-1_NG%20(Revised).pdf

Hutton, Marcus, and Tehranian (JFE 2009) show that more transparent financial reporting of earnings reduces the likelihood of a future stock price crash. We extend their work by examining how management earnings guidance is related to such crash risk. Accounting for endogeneity in guidance decisions...