Title
Do Corporations Manage Earnings to Meet/Exceed Analyst Forecasts? Evidence from Pension Plan Assumption Changes
Document Type
Article
Publication Date
6-2014
Publication Source
Review of Accounting Studies
Abstract
A significantly larger number of firms increase the expected rate of return on pension plan assets (ERR) to make their reported earnings meet/exceed analyst forecasts than would be expected by chance. In the short run, the stock market reacts positively to these firms’ earnings announcements, suggesting that investors fail to recognize that earnings benchmarks are achieved through ERR manipulation. In the long run, however, firms that employ this earnings management strategy significantly underperform control firms in both stock returns and operating performance.
Inclusive pages
698–735
ISBN/ISSN
1380-6653
Copyright
Copyright © 2014, Springer
Publisher
Springer
Volume
19
Peer Reviewed
yes
Issue
2
eCommons Citation
An, Heng; Lee, Yul W.; and Zhang, Ting, "Do Corporations Manage Earnings to Meet/Exceed Analyst Forecasts? Evidence from Pension Plan Assumption Changes" (2014). Economics and Finance Faculty Publications. 44.
https://ecommons.udayton.edu/eco_fac_pub/44
COinS
Comments
Permission documentation is on file.