Table 1.

Sample selection and distribution

Panel A: Sample selection
Annual management earnings forecasts for fiscal years 2001 to 202057,943
Less: Missing financial data from NEEDS(6,834)
Less: Industries with less than 10 firms are excluded in the calculation of discretionary accruals(6,107)
Less: Dropped observations because of the inclusion of lagged variables(6,685)
Less: Irregular accounting period and others(168)
Initial sample38,148
Final samples to test H1: 
Forecast revision speed (SPEED)34,974
Forecast revision frequency (REVFRQ)34,974
Forecast revision timeliness (TIMELY)28,347
Panel B: Sample distribution
Forecast yearNumber of firm-years(%)
20032,2295.84
20042,2225.82
20052,2455.88
20062,2455.88
20072,2605.92
20082,2715.95
20092,2926.01
20102,2475.89
20112,1875.73
20121,7854.68
20132,0735.43
20142,0545.38
20152,0325.33
20162,0145.28
20172,0055.26
20182,0075.26
20191,9965.23
20201,9845.20
 38,148100.00

Notes:

Panel A of this table summarizes the sample selection procedure for the main tests. The final samples for SPEED, REVFRQ and TIMELY are derived from the initial sample that comprises of annual management earnings forecasts available on NEEDS and covers period 2001–2020. The sample selection procedure yields an initial sample of 38,148 management earnings forecasts, from which the samples for SPEED (34,974), REVFRQ (34,974) and TIMELY (28,347) are derived. Panel B presents distribution properties for the sample of 38,148 management earnings forecasts released in the period 2001–2020. Around 5% of the total sample of management forecasts are reported in each year.

[ViewLarge]
This Feature Is Available To Subscribers Only

or Create an Account

Close Modal
Close Modal