Management Earnings Forecasts, Earnings Quality and Stock Price Informativeness

John Kommunuri

doi:10.26182/n1tr-1m88

Management Earnings Forecasts, Earnings Quality and Stock Price Informativeness

John Kommunuri

UWA Business School

Research output: Thesis › Doctoral Thesis

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Abstract

This thesis examines the stock market's assessment of corporate earnings and management earnings forecasts (MEFs). The findings show that management EPS forecasts and accuracy improve the future earnings response coefficient (FERC). The findings also reveal strong empirical evidence of a complementary relationship between earnings, MEFs, and FERC. The relation is robust in that past earnings enhance the credibility of MEFs. Based on foreign assets and the number of segments, firm diversification is negatively associated with the FERC of earnings and MEFs but exhibits a positive association for diversification measures based on foreign sales. The findings are relevant for investor decision making.

Original language	English
Qualification	Doctor of Philosophy
Awarding Institution	The University of Western Australia
Supervisors/Advisors	Birt, Jacqueline, Supervisor Bayne, Lyndie, Supervisor
Thesis sponsors	Australian Government Research Training Program
Award date	20 Mar 2022
DOIs	https://doi.org/10.26182/n1tr-1m88
Publication status	Unpublished - 2021

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10.26182/n1tr-1m88

THESIS - DOCTOR OF PHILOSOPHY - KOMMUNURI John David - 2021
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AB - This thesis examines the stock market's assessment of corporate earnings and management earnings forecasts (MEFs). The findings show that management EPS forecasts and accuracy improve the future earnings response coefficient (FERC). The findings also reveal strong empirical evidence of a complementary relationship between earnings, MEFs, and FERC. The relation is robust in that past earnings enhance the credibility of MEFs. Based on foreign assets and the number of segments, firm diversification is negatively associated with the FERC of earnings and MEFs but exhibits a positive association for diversification measures based on foreign sales. The findings are relevant for investor decision making.

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Management Earnings Forecasts, Earnings Quality and Stock Price Informativeness

Abstract

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