Table 5

Logistic regression results of the relation between income-increasing earnings management and the probability of meeting/just beating analyst forecasts (H4)

 (1)
Dep. varSMBEAT
AAcruals0.045 (0.780)
AProduction0.092 (0.668)
AExpenditures−0.267 (0.330)
ACFO0.229 (0.176)
ARPS0.038 (0.952)
ARPP0.761 (0.237)
Analyst0.008** (0.046)
GVT−0.014 (0.835)
ROA0.380 (0.682)
Posi∆Profit0.409*** (0.000)
Profitable0.348** (0.037)
Sales growth0.022 (0.837)
MTB−0.030** (0.048)
Size−0.037 (0.205)
CFO0.350 (0.330)
SEO−0.125* (0.070)
Delisting risk0.420 (0.217)
Constant−0.748 (0.191)
Year fixed effectsYes
Industry fixed effectsYes
Observations7,484
Pseudo R20.029

Note(s): This table presents the logistic regression results of the relation between income increasing earnings management and meeting/just beating analyst forecasts. The sample consists of firms that achieve MBE by a small margin and non-MBE firms. All variables are defined in  Appendix 1. p-values for two-tailed tests are given in parentheses and are based on robust standard errors clustered by firm and year. *, ** and *** indicate statistical significance at the 10, 5 and 1% levels, respectively

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