Found 2 article(s) for author 'Earnings Management'

Speaking of the short-term: disclosure horizon and managerial myopia

Speaking of the short-term: disclosure horizon and managerial myopia. George Serafeim, March 12, 2015, Paper. “We study conference calls as a voluntary disclosure channel and create a proxy for the time horizon that senior executives emphasize in their communications. We find that our measure of disclosure time horizon is associated with capital market pressures and executives’ short-term monetary incentives. Consistent with the language emphasized during conference calls partially capturing short-termism, we show that our proxy is associated with earnings and...” Link

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How to Kill Quarterly Earnings Guidance

How to Kill Quarterly Earnings Guidance. George Serafeim, June 18, 2014, Opinion. “Quarterly earnings guidance has outlived its usefulness. There are instances when it might be perfectly legitimate and value enhancing to issue earnings guidance in an effort to inform the market about material disruptions, shifts in the business model etc., but on the whole, the practice is not a helpful way of building a sustainable business that is geared to succeed in the long-term. By now it is well understood that the short-term focus by shareholders on quarterly earnings can impair firms’ ability to create long-term value…” Link Verified October 11, 2014

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