Analysts' Forecasts Following Forced CEO Changes

Ka Wai Choi · Xiaomeng Charlene Chen · Sue Wright · Hai Wu

16 citations0/0 files storedAbacus

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Auditing, Earnings Management, Governance Corporate Finance and Governance Forecasting Techniques and Applications

Abstract

This paper examines analysts' earnings forecasts during the period of uncertainty following a change of chief executive officer (CEO). It distinguishes between forced and non‐forced CEO changes, and examines whether analysts utilize their information advantage to reduce the heightened uncertainty of a forced change of CEO. Examining a sample of Australian companies followed by analysts between 1999 and 2009, we find that forecasting accuracy is lower and earnings forecasts are more optimistic for firms experiencing forced CEO turnover compared to firms not undergoing such a change. However, dispersion is not statistically different. The results suggest that forced CEO turnover events provide a challenge to the forecasting environment for analysts. During CEO changes, investors should be aware that forecasts are less accurate and have an optimistic bias.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 16 citations exist upstream.

References

2001Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature 2005Performance matched discretionary accrual measures 1988Outside directors and CEO turnover 1995The information content of losses 2002Differences of Opinion and the Cross Section of Stock Returns 2006Information Uncertainty and Stock Returns 2002Management's Incentives to Avoid Negative Earnings Surprises 1988Stock prices and top management changes

Cited by

2017The effect of restatements on analyst behavior 2023An Empirical Investigation of the Effect of CFO Power on Disclosure Quality

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.