EconPapers    
Economics at your fingertips  
 

The perceived credibility of forward-looking performance disclosures

Vasiliki Athanasakou and Khaled Hussainey

Accounting and Business Research, 2014, vol. 44, issue 3, 227-259

Abstract: We investigate the credibility of forward-looking performance disclosures (FLPDs) in the narrative sections of annual reports, as perceived by investors. Our proxy for these disclosures is an index of statements about future performance. We find that companies issue more FLPDs when raising debt or conveying bad news in the financial statements. In the presence of these managerial incentives, investor reliance on FLPDs increases with the quality of earnings reported in the audited financial statements. Our results suggest that firms derive a benefit in terms of higher credibility for their narrative disclosures from having a reputation for high quality earnings.

Date: 2014
References: View complete reference list from CitEc
Citations: View citations in EconPapers (13) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1080/00014788.2013.867403 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: The perceived credibility of forward-looking performance disclosures (2014) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:acctbr:v:44:y:2014:i:3:p:227-259

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RABR20

DOI: 10.1080/00014788.2013.867403

Access Statistics for this article

Accounting and Business Research is currently edited by Vivien Beattie

More articles in Accounting and Business Research from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

 
Page updated 2021-04-21
Handle: RePEc:taf:acctbr:v:44:y:2014:i:3:p:227-259