University of Surrey

Test tubes in the lab Research in the ATI Dance Research

Mandatory vs Voluntary Management Earning Forecasts

Gounopoulos, D Mandatory vs Voluntary Management Earning Forecasts In: American Accounting Association (AAA), 2010 - ?, San Francisco, USA.

[img]
Preview
PDF
Voluntary vs Mandatory Earnings Management in IPOs Management Science.pdf - Accepted Version
Available under License : See the attached licence file.

Download (464kB)
[img]
Preview
PDF (licence)
SRI_deposit_agreement.pdf

Download (33kB)
Official URL: http://aaahq.org/

Abstract

Companies making initial public offerings in Greece were obliged to include next year’s profit in the new issue prospectuses, in order to help investors’ value companies and make safe investment decisions, until the regulations changed to voluntary status. This study takes advantage of this regulation alteration and compares the accuracy of earnings forecasts under both mandatory and voluntary disclosure environments. In order to achieve this it uses a large data set of 305 IPOs, which were floated during January 1993 to June 2009 period and employs a number of error metrics to examine forecast accuracy. Findings indicate behavioural change as earnings forecast pessimistic trend during the mandatory era turns to optimistic in the voluntary period. The comparison of those two methods suggests that mandatory earnings forecast regulation may force firms to forecast that have nor the incentives neither the ability to do so. Instead, the results imply that regulations penalizing IP

Item Type: Conference or Workshop Item (Paper)
Divisions: Faculty of Business, Economics and Law > Surrey Business School
Depositing User: Symplectic Elements
Date Deposited: 13 Jun 2012 10:58
Last Modified: 23 Sep 2013 19:04
URI: http://epubs.surrey.ac.uk/id/eprint/154543

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year


Information about this web site

© The University of Surrey, Guildford, Surrey, GU2 7XH, United Kingdom.
+44 (0)1483 300800