Correlation between Types, Precision and Accuracy of Management Earnings Forecasts
DOI:
https://doi.org/10.54097/hbem.v2i.2336Keywords:
precision of MEFs; accuracy; MEFs; mandatory information disclosure.Abstract
This paper examines the impacts of the types and precision of management earnings forecasts (hereafter as MEFs) on the accuracy of MEFs of listed companies in China. The empirical results show that compared with voluntary disclosure, mandatory disclosure has higher accuracy. In addition, the higher the precision of the company's MEFs, the more accurate the information contained in the MEFs, the higher the accuracy of the MEFs. The conclusion of this paper enriches the influencing factors of accuracy of company MEFs, which not only helps investors to make investment decisions, but also provides a theoretical basis for regulatory authorities to formulate regulatory policies.
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