The impact of litigation risk on the strategic timing of management earnings forecasts
Jackson, Andrew B., Gallery, Gerry, & Balatbat, Maria C.A. (2015) The impact of litigation risk on the strategic timing of management earnings forecasts. Accounting and Finance, 55(2), pp. 467-495.
This paper examines whether managers strategically time their earnings forecasts (MEFs) as litigation risk increases. We find as litigation risk increases, the propensity to release a delayed forecast until after the market is closed (AMC) or a Friday decreases but not proportionally more for bad news than for good news. Host costly this behaviour is to investors is questionable as share price returns do not reveal any under-reaction to strategically timed bad news MEF released AMC. We also find evidence consistent with managers timing their MEFs during a natural no-trading period to better disseminate information.
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|Item Type:||Journal Article|
|Keywords:||Strategic disclosure, Management earnings forecasts, Disclosure timing, Litigation risk, Continuous disclosure, Regulation|
|Subjects:||Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > ACCOUNTING AUDITING AND ACCOUNTABILITY (150100)|
|Divisions:||Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Accountancy
|Deposited On:||17 Sep 2014 22:27|
|Last Modified:||15 Jun 2015 04:58|
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