The Relationship Between Managerial Ability and Mandatory Forecast: Evidence from China

• Main Authors: Xiong, Xi, 熊曦
• Other Authors: Chin, Chen Lung
• Format: Others
• Language: en_US
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/76964648560767148765

碩士 === 國立政治大學 === 會計學系 === 104 === This thesis focuses on mandatory forecast issued from 2007 to 2013 in China and investigate whether managerial ability is related to mandatory forecasts types, forecast error and market reaction. Additionally, this thesis also examines whether managerial ability decrease the likelihood to avoid mandatory forecast thresholds. Finally, whether the managerial ability will increase the probability of issuing voluntary forecasts in the following year is an interesting but unsolved issue; I will fill the gap. Empirical results show that managers with superior ability tend to issue mandatory forecasts in the more precise type. As for the accuracy, the mandatory forecasts issued by better managers tend to have less error. I also find that managerial ability can promotes the informativeness of management earnings forecasts for the public. Additionally, high ability managers are less likely to avoid the thresholds of mandatory forecasts. Furthermore, better managers are more likely to issue voluntary forecasts in the following year of mandatory forecasts. Key Words: Managerial Ability, Mandatory Earnings Forecast, Forecast Format, Forecast Error, Market Reaction.