TY - JOUR
T1 - The rewards to meeting or beating earnings expectations
AU - Bartov, Eli
AU - Givoly, Dan
AU - Hayn, Carla
PY - 2002
Y1 - 2002
N2 - This paper finds that firms that meet or beat current analysts' earnings expectations (MBE) enjoy a higher return over the quarter than firms with similar quarterly earnings forecast errors that fail to meet these expectations. Further, such a premium to MBE, although somewhat smaller, exists in the cases where MBE is likely to have been achieved through earnings or expectations management. The findings also indicate that the premium to MBE is a leading indicator of future performance. This premium and its predictive ability are only marginally affected by whether the MBE is genuine or the result of earnings or expectations management.
AB - This paper finds that firms that meet or beat current analysts' earnings expectations (MBE) enjoy a higher return over the quarter than firms with similar quarterly earnings forecast errors that fail to meet these expectations. Further, such a premium to MBE, although somewhat smaller, exists in the cases where MBE is likely to have been achieved through earnings or expectations management. The findings also indicate that the premium to MBE is a leading indicator of future performance. This premium and its predictive ability are only marginally affected by whether the MBE is genuine or the result of earnings or expectations management.
KW - Analysts' forecast
KW - Earnings expectation
KW - Earnings management
KW - Expectations management
KW - Loss
UR - http://www.scopus.com/inward/record.url?scp=0036267630&partnerID=8YFLogxK
U2 - 10.1016/S0165-4101(02)00045-9
DO - 10.1016/S0165-4101(02)00045-9
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AN - SCOPUS:0036267630
SN - 0165-4101
VL - 33
SP - 173
EP - 204
JO - Journal of Accounting and Economics
JF - Journal of Accounting and Economics
IS - 2
ER -