Empirical study about the disclosure method of management earnings forecasts

2015 Fiscal Year Final Research Report

• Project/Area Number: 25380606
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Accounting
• Research Institution: Tokyo Metropolitan University
• Principal Investigator: ASANO Takashi 首都大学東京, 社会(科)学研究科, 准教授 (30329833)
• Project Period (FY): 2013-04-01 – 2016-03-31
• Keywords: 財務会計

Outline of Final Research Achievements

I investigate how the management of Japanese firms makes earnings forecasts, and analysts and the market will react these forecasts. In Japan, management forecasts system was revised in 2012 and the disclosure method of management forecasts was mitigated. I find (1) the method of management forecasts does not change so much after the revision; (2) the diversity of the disclosure method is seen in US; (3) the ratio of disclosing range forecasts and disaggregated forecasts such as cash flows and capital expenditures increase after Regulation FD; (4) analysts and the market react range forecasts smaller than point forecasts and react earnings forecasts with disaggregated forecasts larger than without disaggregated ones.

Free Research Field

財務会計