Assessing methods of identifying management forecasts: CIG vs. researcher collected

Elizabeth Chuk, Dawn Matsumoto and Gregory S. Miller

Journal of Accounting and Economics, 2013, vol. 55, issue 1, 23-42

Abstract: This paper examines the characteristics of management forecasts available on Thomson First Call’s Company Issued Guidance (CIG) database relative to a sample of forecasts hand-collected through a search of company press releases. Due to the significantly lower cost of using CIG (relative to hand-collecting data), academics have increasingly relied on this database as a source of management forecasts. However, it is important for researchers to consider the properties of this database (such as coverage, accuracy, and breadth) when evaluating whether it is an appropriate data source for their study. Overall, our results suggest systematic differences between forecasts reported on CIG and forecasts gathered from company press releases. We suggest several sample criteria that will remove or mitigate these biases.

Keywords: CIG; Forecasts; Management guidance; Accounting disclosure (search for similar items in EconPapers)
JEL-codes: C90 M41 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (50)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaecon:v:55:y:2013:i:1:p:23-42

DOI: 10.1016/j.jacceco.2012.07.001

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