Panel A of the table presents descriptive statistics for the variables of Equation (2). Panel B reports Pearson and Spearman correlation matrices between MFACC, SPEED, REVFRQ and TIMELY. Correlation indicated by *** indicates significance at the 1% level. MFACC indicates forecast accuracy and is defined as the absolute value of the initial management earnings forecast minus realized earnings deflated by lagged market value of equity. SPEED measures forecast revision speed and is calculated by subtracting the industry-year average revision speed from speed (estimated by the natural logarithm of the ratio of the base case scenario of forecast revision pattern to firms’ forecast revision pattern during the fiscal year plus one). REVFRQ denotes forecast revision frequency and is the natural logarithm of the number of forecast revisions plus one. TIMELY denotes forecast revision timeliness and is the natural logarithm of the sum of the number of trading days between forecast revision and the earnings announcement dates divided by the number of forecast revisions. BIGN captures audit quality and equals 1 if a firm is audited by a Big N auditor and 0 otherwise. FINN denotes forecast innovation and is computed as the absolute value of forecast earnings minus prior realized earnings deflated by lagged market value of equity. ABSDA captures the absolute magnitude of earnings management through abnormal accruals and is estimated using the cross-sectional Jones (1991) model. SIZE denotes firm size and is the natural logarithm of lagged market value of equity. ROA is the ratio of net income to total assets. LOSS is 1 if the firm’s net income is negative and 0 otherwise. DISTRESS denotes financial distress estimated by Zmijewski’s (1984) financial distress index. NUMSUB is the natural logarithm of the number of subsidiaries plus one. EARNVOL denotes earnings volatility and is defined as the standard deviations of return-to-equity over the previous five years. BODSIZE is the natural logarithm of the total number of directors on the board. OUTDIR is the ratio of outside directors to total directors. OWNOFF, OWNCORP, OWNBNK and OWNFRGN are the percentage ownership interest of management and board members, other companies (excluding financial institutions), financial institution and foreign investors, respectively.