Ajinkya, B., Bhojraj, S. and Sengupta, P. (2005) The Association between Outside Directors, Institutional Investors and the Properties of Management Earnings Forecasts. Journal of Accounting Research, 43, 343-374.
https://doi.org/10.1111/j.1475-679x.2005.00174.x

has been cited by the following article:

• TITLE: How Inflation Affects the Management Earnings Forecasts

  AUTHORS: Jingyuan Zou

  KEYWORDS: Management Earnings Forecast, Inflation, Voluntary Information Disclosure

  JOURNAL NAME: American Journal of Industrial and Business Management, Vol.9 No.1, January 7, 2019

  ABSTRACT: I use 2005-2017 Shenzhen and Shanghai’s A-share listed company’s quarterly earnings forecasts data as sample to perform multiple regression analysis. I find that when inflation rate rises, not only management’s possibility of making earnings forecasts but also the precision and accuracy of management forecasts declines, ceteris paribus. Furthermore, I also find that when inflation rate rises, the state-owned nature of enterprises will aggravate the decline in the precision and accuracy of listed companies’ earnings forecasts. In the unique context of semi-mandatory disclosure rules in China, if companies voluntarily disclose more performance-related information, it usually means that the managers are more capable, more confident. Therefore, this voluntary behavior can alleviate the decline in the precision and accuracy of the earnings forecast brought by inflation. Finally, I find that the precision and accuracy of the earnings forecasts will further decline for companies with higher debt ratios, indicating that liabilities may be one of the paths of inflation affecting voluntary information disclosure.