Public regulatory reform and management earnings forecasts in a low private litigation environment

Accounting and Finance

Volumn 51, Issue 2, 2011, Pages 437-465

  Dunstan, Keitha ^a   Gallery, Gerry ^b   Truong, Thu Phuong ^c  

^a BOND UNIVERSITY   (Australia)

^b QUEENSLAND UNIVERSITY OF TECHNOLOGY   (Australia)

^c VICTORIA UNIVERSITY OF WELLINGTON   (New Zealand)

Author keywords

Continuous disclosure; G14; K22; Management earnings forecasts; Private litigation; Public regulatory reform

Indexed keywords

EID: 79955630766     PISSN: 08105391     EISSN: 1467629X     Source Type: Journal    
DOI: 10.1111/j.1467-629X.2010.00376.x     Document Type: Article

References (42)

1. Ajinkya, B., S. Bhojraj, and P. Sengupta, 2005, The association between outside directors, institutional Investors and the properties of management earnings forecasts, Journal of Accounting Research 43(3), 343-376.
2. Baginski, S. P., J. M. Hassell, and M. D. Kimbrough, 2002, The effect of legal environment on voluntary disclosure: evidence from management earnings forecasts issued in U.S. and Canadian markets, The Accounting Review 77(1), 25-50.
3. Bailey, W., H. Li, C. X. Mao, and R. Zhong, 2003, Regulation fair disclosure and earnings information: market, analyst, and corporate responses, The Journal of Finance 58(6), 2487-2514.
4. Botosan, C. A., 1997, Disclosure level and the cost of equity capital, The Accounting Review 72(3), 323-349.
5. Brown, P., S. L. Taylor, and T. S. Walter, 1999, The impact of statutory sanctions on the level and information content of voluntary corporate disclosure, Abacus 35(2), 138-162.
6. Cameron, A. B., 1986, A review of management's earnings forecast research, Journal of Accounting Literature 5, 57-81.
7. Chan, H., R. Faff, Y. K. Ho, and A. Ramsay, 2007, Management earnings forecasts in a continuous disclosure environment, Pacific Accounting Review 19(1), 5-30.
8. Coller, M., and T. L. Yohn, 1997, Management forecasts and information asymmetry: an examination of bid-ask spreads, Journal of Accounting Research 35(2), 181.
9. Cox, C. T., 1985, Further evidence on the representativeness of management earnings forecasts, The Accounting Review 60(4), 692-701.
10. Dunstan, K., G. Gallery, and T. P. Truong, 2009, The impact of disclosure reform and alternative sources of earnings-related information on the market reaction to firm-based earnings-related disclosures, Working paper (Victoria University of Wellington, Wellington, New Zealand).
11. Frankel, R., M. McNichols, and G. P. Wilson, 1995, Discretionary disclosure and external financing, The Accounting Review 70(1), 135-150.
12. Frijns, B., A. Gilbert, and A. Tourani-Rad, 2008, Insider trading, regulation, and the components of the bid-ask spread, The Journal of Financial Research 31(3), 225-246.
13. Frost, C. A., 2004, Characteristics and information value of corporate disclosures of forward looking information in global equity markets, Working paper (State University of New York at Buffalo, New York, the United States).
14. Gallery, G., N. Gallery, and C. M. G. Hsu, 2002, The association between management and analysts' earnings forecasts in the Australian continuous disclosure environment, Working paper (Queensland University of Technology, Brisbane, Australia).
15. Gallery, G., C. Guo, and J. Nelson, 2010, The impact of litigation risk on disclosure timeliness, Working paper (Queensland University of Technology, Brisbane, Australia).
16. Gaynor, B., 2003, Warning signs disclose problems, The New Zealand Herald, February 22.
17. Golding, G., and N. Kalfus, 2004, The continuous evolution of Australia's continuous disclosure laws, Company and Securities Law Journal 22, 385-426.
18. Graham, J. R., C. R. Harvey, and S. Rajgopal, 2005, The economic implications of corporate financial reporting, Journal of Accounting and Economics 40, 3-73.
19. Healy, P. M., and K. G. Palepu, 2001, Information asymmetry, corporate disclosure, and the capital markets: a review of the empirical disclosure literature, Journal of Accounting and Economics 31, 405-440.
20. Heflin, F., K. R. Subramanyam, and Y. Zhang, 2003, Regulation FD and the financial information environment: early evidence, The Accounting Review 78(1), 1-37.
21. Hirst, E., L. Koonce, and S. Venkataraman, 2008, Management earnings forecasts: a review and framework, Accounting Horizons 22(3), 315-338.
22. Hossain, M., M. H. B. Perera, and A. R. Rahman, 1995, Voluntary disclosure in the annual reports of New Zealand companies, Journal of International Financial Management and Accounting 6(1), 69-87.
23. Huang, M., A. Marsden, and R. Poskitt, 2009, The impact of disclosure reform on the NZX's financial information environment, Pacific-Basin Finance Journal 17, 460-478.
24. Johnson, M. F., R. Kasznik, and K. K. Nelson, 2001, The impact of securities litigation reform on the disclosure of forward-looking information by high technology firms, Journal of Accounting Research 39(2), 297-327.
25. Karamanou, I., and N. Vafeas, 2005, The association between corporate boards, audit committees, and management earnings forecasts: an empirical analysis, Journal of Accounting Research 43(3), 453-486.
26. Kasznik, R., and B. Lev, 1995, To warn or not to warn: management disclosures in the face of an earnings surprise, The Accounting Review 70(1), 113-134.
27. Kato, K., D. J. Skinner, and M. Kunimura, 2009, Management forecasts in Japan: an empirical study of forecasts that are effectively mandated, The Accounting Review 84(5), 1575-1606.
28. King, R., G. Pownall, and G. Waymire, 1990, Expectations adjustments via timely management forecasts: review, synthesis, and suggestions for future research, Journal of Accounting Literature 9, 113-144.
29. Macfarlane, H., 2008, Investor losses: a fruitful ground for class actions. [Cited 5 August 2008.] Available from URL.
30. McGill, N., 2004, The ethical dilemma of continuous disclosure, Asia Pacific Law Review 12(2), 191-215.
31. New Zealand Exchange Limited, 2003, NZSX and NZDX listing rule 10 disclosure and information.
32. Owusu-Ansah, S., and J. Yeoh, 2005, The effect of legislation on corporate disclosures practices, Abacus 41(1), 92-109.
33. Pasha, S., 2006, Corporate compliance rules challenged. [Cited 22 June 2009.] Available from URL.
34. Rogers, J. L., and A. V. Buskirk, 2009, Shareholder litigation and changes in disclosure behaviour, Journal of Accounting and Economics 47, 136-156.
35. Rogers, J. L., and P. C. Stocken, 2005, Credibility of management earnings forecasts, The Accounting Review 80(4), 1233-1260.
36. Sacasa, N., 2008, Preventing future crises: priorities for regulatory reform after the meltdown, Finance & Development 45(4), 11-14.
37. Skinner, D. J., 1994, Why firms voluntarily disclose bad news, Journal of Accounting Research 32(1), 38-60.
38. Skinner, D. J., 1997, Earnings disclosures and stockholder lawsuits, Journal of Accounting and Economics 23, 249-282.
39. Todd, S., 2005, Accident compensation and the common law, in: Todd S., ed., The Law of Torts in New Zealand (Thomson Brookers, Wellington).
40. Verrecchia, R. E., 2001, Essays on disclosure, Journal of Accounting and Economics 31, 97-180.
41. Wang, I. Y., 2007, Private earnings guidance and its implications for disclosure regulation, The Accounting Review 82(5), 1299-1332.
42. Waymire, G., 1985, Earnings volatility and voluntary management forecast disclosure, Journal of Accounting Research 23(1), 268-295.