Bundled forecasts in empirical accounting research

Jonathan L. Rogers and Andrew Van Buskirk

Journal of Accounting and Economics, 2013, vol. 55, issue 1, 43-65

Abstract: This paper examines “bundled” forecasts, or management earnings forecasts issued concurrently with earnings announcements, which have evolved to become the most common type of management forecast. We describe the econometric problems associated with measuring bundled forecast news and, in particular, provide evidence that the measurement error in the traditional calculation of forecast news is material and is systematically associated with variables frequently studied in forecast-related research. We illustrate an application of conditional expectations to overcome these problems. Finally, we offer guidance and caveats to researchers considering the use of this method in the future.

Keywords: Management forecasts; Conference calls; Reg FD; Earnings announcements (search for similar items in EconPapers)
JEL-codes: G14 M40 M41 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (61)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaecon:v:55:y:2013:i:1:p:43-65

DOI: 10.1016/j.jacceco.2012.06.001

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