Test of Hypothesis 3: Do timely SAB74 disclosures help analysts forecast earnings under ASC 606?
| (1) | (2) | |
|---|---|---|
| Dependent variable = | AnalystDispersion | AbsAFE |
| DisclosureTimeliness | −0.000 | 0.008 |
| (−0.003) | (0.562) | |
| ASC606ImpactMagnitude | 0.021*** | 0.037*** |
| (3.560) | (2.957) | |
| Negative606Impact | 0.002 | 0.013 |
| (0.318) | (0.819) | |
| DisclosureTimeliness × ASC606ImpactMagnitude | −0.037** | −0.072** |
| (−2.224) | (−2.077) | |
| Negative606Impact × DisclosureTimeliness | −0.003 | −0.013 |
| (−0.232) | (−0.426) | |
| Negative606Impact × ASC606ImpactMagnitude | 0.002 | −0.054 |
| (0.118) | (−1.348) | |
| Negative606Impact × DisclosureTimeliness × ASC606ImpactMagnitude | −0.006 | 0.107 |
| (−0.130) | (1.234) | |
| PYDispersion | 0.008 | 0.004 |
| (1.233) | (0.348) | |
| AnalystFollowing | −0.002 | 0.005 |
| (−0.965) | (0.730) | |
| LogFirmAge | −0.002* | −0.003 |
| (−1.927) | (−1.553) | |
| LogMarketCap | −0.001 | −0.003 |
| (−1.033) | (−1.263) | |
| BookToMarket | 0.004 | 0.002 |
| (1.490) | (0.515) | |
| InstitutionalOwnership | 0.001 | −0.002 |
| (0.198) | (−0.302) | |
| RestOrWeaknessPast3Years | 0.003 | 0.012 |
| (0.584) | (0.746) | |
| GuidancePastYear | −0.001 | −0.002 |
| (−0.655) | (−0.634) | |
| GuidedEPSQ12018 | −0.002 | −0.006 |
| (−0.599) | (−1.051) | |
| SAB74FinalWordCount | −0.000 | 0.000 |
| (−0.172) | (0.910) | |
| ComplexityPCA | 0.001 | 0.001 |
| (1.473) | (0.546) | |
| QualitativeImpactDisclosure | −0.001 | 0.006 |
| (−0.358) | (0.992) | |
| ComparePoliciesDisclosure | −0.001 | −0.011 |
| (−0.599) | (−1.338) | |
| ImplementationStatusDisclosure | −0.003 | −0.016 |
| (−0.871) | (−1.081) | |
| CEOChairDuality | −0.001 | −0.002 |
| (−0.409) | (−0.839) | |
| BoardSize | 0.001 | −0.001 |
| (1.171) | (−0.553) | |
| Constant | 0.017 | 0.044 |
| (1.324) | (1.282) | |
| Observations | 131 | 131 |
| R-squared | 0.655 | 0.482 |
| Industry FE | Yes | Yes |
| (1) | (2) | |
|---|---|---|
| Dependent variable = | ||
| −0.000 | 0.008 | |
| (−0.003) | (0.562) | |
| 0.021*** | 0.037*** | |
| (3.560) | (2.957) | |
| 0.002 | 0.013 | |
| (0.318) | (0.819) | |
| −0.037** | −0.072** | |
| (−2.224) | (−2.077) | |
| −0.003 | −0.013 | |
| (−0.232) | (−0.426) | |
| 0.002 | −0.054 | |
| (0.118) | (−1.348) | |
| −0.006 | 0.107 | |
| (−0.130) | (1.234) | |
| 0.008 | 0.004 | |
| (1.233) | (0.348) | |
| −0.002 | 0.005 | |
| (−0.965) | (0.730) | |
| −0.002* | −0.003 | |
| (−1.927) | (−1.553) | |
| −0.001 | −0.003 | |
| (−1.033) | (−1.263) | |
| 0.004 | 0.002 | |
| (1.490) | (0.515) | |
| 0.001 | −0.002 | |
| (0.198) | (−0.302) | |
| 0.003 | 0.012 | |
| (0.584) | (0.746) | |
| −0.001 | −0.002 | |
| (−0.655) | (−0.634) | |
| −0.002 | −0.006 | |
| (−0.599) | (−1.051) | |
| −0.000 | 0.000 | |
| (−0.172) | (0.910) | |
| 0.001 | 0.001 | |
| (1.473) | (0.546) | |
| −0.001 | 0.006 | |
| (−0.358) | (0.992) | |
| −0.001 | −0.011 | |
| (−0.599) | (−1.338) | |
| −0.003 | −0.016 | |
| (−0.871) | (−1.081) | |
| −0.001 | −0.002 | |
| (−0.409) | (−0.839) | |
| 0.001 | −0.001 | |
| (1.171) | (−0.553) | |
| Constant | 0.017 | 0.044 |
| (1.324) | (1.282) | |
| Observations | 131 | 131 |
| 0.655 | 0.482 | |
| Industry FE | Yes | Yes |
Note(s): This table shows the results of estimation of Equation (3) using OLS regressions. The dependent variable in column (1) is AnalystDispersion, or the standard deviation of analyst forecasts scaled by stock price. Column (2) uses the absolute value of analyst forecast accuracy, AbsAFE, the absolute value of the median analyst forecast error, as a dependent variable. Each specification includes SIC 2-digit industry fixed effects. Variables are defined in Appendix A. Robust t-statistics are in parenthesis, with statistical significance denoted as ***p < 0.01, **p < 0.05, *p < 0.1
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