Product Market Competition and Managerial Disclosure of Earnings Forecasts
Author | : Ying Huang |
Publisher | : |
Total Pages | : 1 |
Release | : 2016 |
ISBN-10 | : OCLC:1305990640 |
ISBN-13 | : |
Rating | : 4/5 ( Downloads) |
Download or read book Product Market Competition and Managerial Disclosure of Earnings Forecasts written by Ying Huang and published by . This book was released on 2016 with total page 1 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the effect of product market competition on managerial disclosure of earnings forecasts using large reductions in U.S. import tariff rates to identify an exogenous increase in competition for domestic firms in U.S. product markets. Our difference-in-difference estimations show that tariff reductions are associated with a significant decrease in management forecasts of annual earnings by U.S. domestic firms. Further, this decrease is more pronounced when the tariff rate reduction triggers a greater increase in imports and when the forecasts are likely to incur higher proprietary costs. Our findings are consistent with competition from existing rivals reducing voluntary disclosure through increased proprietary costs.