Accounting comparability and the accuracy of management earnings forecasts in Japan

Kuang, Wenjun

Accounting comparability and the accuracy of management earnings forecasts in Japan

Kuang, Wenjun

Discussion Papers In Economics And Business, 2023, 23-07, 1-46

アクセス数:77件（2025-04-27 19:51 集計）

固定URL: https://hdl.handle.net/11094/91326

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タイトル	Accounting comparability and the accuracy of management earnings forecasts in Japan
著者	著者名 Kuang, Wenjun
キーワード等	Accounting comparability
	Management earnings forecast
	Monitoring effect
	Learning effect
抄録	This study examines the influence of accounting comparability on management earnings forecast accuracy. Using the Japanese setting, where management earnings forecasts are effectively mandated and accounting comparability could be more exogenous than in other countries, I find a positive relationship between accounting comparability and management earnings forecast accuracy. This indicates that comparable financial information could improve the accuracy of management earnings forecasts. I also provide evidence that the positive relationship between accounting comparability and management earnings forecast accuracy is more pronounced when subject firms have higher institutional ownership and peer firms have higher accounting (i.e., accrual) quality. My results suggest that accounting comparability increases the disclosure quality of management earnings forecasts by enhancing investors’ monitoring of managerial behaviours and facilitating managerial learning from peer firms. Additional analyses show that the positive effect of accounting comparability on management forecast accuracy becomes strengthened after the 2008 quarterly reporting regulation in Japan. However, there is no evidence showing that International Financial Reporting Standards (IFRS) adoption increases the positive effect of comparability. Overall, this study enriches the literature on determinants of the accuracy of management earnings forecasts and highlights the positive consequences of accounting comparability in the Japanese capital market.
出版者	Graduate School of Economics, Osaka University
収録物名	Discussion Papers In Economics And Business
巻(号)	23-07
ページ	1-46
刊行年月	2023-05
言語	英語
ハンドルURL	https://hdl.handle.net/11094/91326
関連情報 (references)	URI http://www2.econ.osaka-u.ac.jp/econ_society/dp/2307.pdf
アクセス権	metadata only access
カテゴリ	ディスカッション／ワーキング・ペーパー DP/WP
カテゴリ	Discussion Papers In Economics And Business

資源タイプ	テクニカルレポート
ローカル資源タイプ	ディスカッション／ワーキング・ペーパー
DCMI資源タイプ	text
DCTERMS.bibliographicCitation	Discussion Papers In Economics And Business. 2023, 23-07, p. 1-46
DC.title	Accounting comparability and the accuracy of management earnings forecasts in Japan
DC.creator	Kuang, Wenjun
DC.publisher	Graduate School of Economics, Osaka University
DC.language' scheme='DCTERMS.RFC1766	英語
DC.type' scheme='DCTERMS.DCMIType	text
DCTERMS.issued' scheme='DCTERMS.W3CDTF	2023-05
DC.relation' scheme='DCTERMS.URI	http://www2.econ.osaka-u.ac.jp/econ_society/dp/2307.pdf
DC.subject	Accounting comparability
	Management earnings forecast
	Monitoring effect
	Learning effect
DCTERMS.abstract	This study examines the influence of accounting comparability on management earnings forecast accuracy. Using the Japanese setting, where management earnings forecasts are effectively mandated and accounting comparability could be more exogenous than in other countries, I find a positive relationship between accounting comparability and management earnings forecast accuracy. This indicates that comparable financial information could improve the accuracy of management earnings forecasts. I also provide evidence that the positive relationship between accounting comparability and management earnings forecast accuracy is more pronounced when subject firms have higher institutional ownership and peer firms have higher accounting (i.e., accrual) quality. My results suggest that accounting comparability increases the disclosure quality of management earnings forecasts by enhancing investors’ monitoring of managerial behaviours and facilitating managerial learning from peer firms. Additional analyses show that the positive effect of accounting comparability on management forecast accuracy becomes strengthened after the 2008 quarterly reporting regulation in Japan. However, there is no evidence showing that International Financial Reporting Standards (IFRS) adoption increases the positive effect of comparability. Overall, this study enriches the literature on determinants of the accuracy of management earnings forecasts and highlights the positive consequences of accounting comparability in the Japanese capital market.
DC.format	91326
citation_title	Accounting comparability and the accuracy of management earnings forecasts in Japan
citation_author	Kuang, Wenjun
citation_publisher	Graduate School of Economics, Osaka University
citation_language	英語
citation_date	2023-05
citation_journal_title	Discussion Papers In Economics And Business
citation_volume	23-07
citation_firstpage	1
citation_lastpage	46
citation_public_url	https://hdl.handle.net/11094/91326
citation_abstract_html_url	http://www2.econ.osaka-u.ac.jp/econ_society/dp/2307.pdf

Accounting comparability and the accuracy of management earnings forecasts in Japan

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