How Inflation Affects the Management Earnings Forecasts
, PP. 21-48 10.4236/ajibm.2019.91003
Keywords: Management Earnings Forecast, Inflation, Voluntary Information Disclosure
2005-2017 Shenzhen and Shanghai’s A-share
listed company’s quarterly earnings forecasts data as sample to perform multiple
regression analysis. I find that when inflation rate rises, not only management’s
possibility of making earnings
also the precision and accuracy of management forecasts declines, ceteris paribus . Furthermore,
I also find
that when inflation rate rises, the state-owned nature of enterprises will
aggravate the decline in the precision and accuracy
of listed companies’ earnings forecasts.
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