This paper examines the effect of ex-ante management forecast accuracy on post-earnings announcement drift when management forecasts about next quarter's earnings are bundled with the current quarter's earnings announcements. This paper builds a composite measure of ex-ante management forecast accuracy that takes into account forecast ability, forecast difficulty and forecast environment. The results show that the bundled forecasts can mitigate investors' under-reaction to current earnings and reduce the magnitude of post earnings announcement drift only when these forecasts have high ex-ante accuracy.
| Speaker: | Ms Li Zhang PhD Candidate, London Business School |
| When: |
2.00 pm - 3.30 pm |
| Venue: | School of Accountancy [Map] Level 4, Meeting Room 4.1 |
| Contact: | Office of the Dean Email: SOAR@smu.edu.sg |