Premium
Discussion of “Expectations Management and Beatable Targets: How Do Analysts React to Explicit Earnings Guidance?” *
Author(s) -
Callen Jeffrey L.
Publication year - 2006
Publication title -
contemporary accounting research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.769
H-Index - 99
eISSN - 1911-3846
pISSN - 0823-9150
DOI - 10.1111/j.1911-3846.2006.tb00335.x
Subject(s) - accounting , citation , earnings , library science , political science , certification , earnings management , management , economics , computer science , law
Cotter, Tuna, and Wysocki (2006) are intent on demonstrating that management uses public forecasts to guide security analysts toward beatable earnings targets. Three major questions arise. First, have the authors made a convincing case for management guidance? Second, are their hypotheses adequately formulated and tested? Third, assuming that they have made their case for management guidance, what implications if any does this have for capital-market policymakers?