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Abstracts prior to volume 5(1) have been archived!

Issue 5(1), October 2010 -- Paper Abstracts
Girard  (p. 9-22)
Cooper (p. 23-32)
Kunz-Osborne (p. 33-41)
Coulmas-Law (p.42-46)
Stasio (p. 47-56)
Albert-Valette-Florence (p.57-63)
Zhang-Rauch (p. 64-70)
Alam-Yasin (p. 71-78)
Mattare-Monahan-Shah (p. 79-94)
Nonis-Hudson-Hunt (p. 95-106) 



JOURNAL OF ACCOUNTING AND FINANCE 


Real Earnings Management, Habitually Meeting/Closely Beating Analysts’ Forecasts and Firm Valuation


Author(s): Jason Jiao

Citation: Jason Jiao, (2020) "Real Earnings Management, Habitually Meeting/Closely Beating Analysts’ Forecasts and Firm Valuation," Journal of Accounting and Finance, Vol. 20, ss. 2, pp. 138-177

Article Type: Research paper

Publisher: North American Business Press

Abstract:

This paper values firms that utilize real earnings management (REM) to habitually meet/closely beat analysts’ earnings forecasts (HabitMBE). The results suggest that in equilibrium, while HabitMBE firms in general enjoy a market premium, HabitMBE firms that use REM repeatedly are penalized by investors, and the market premium disappears. Not surprisingly, I find that HabitMBE firms that have already used REM repeatedly try to curtail its use. Another interesting finding is that analysts’ downward forecast revision has a significantly negative effect on firms’ valuation, which prior studies have not clearly documented.