{"id":{"repo_id":"uiuc","oai_identifier":"oai:www.ideals.illinois.edu:2142/87173"},"canonical_url":"https://search.dev.ndltd.org/etd/uiuc/oai:www.ideals.illinois.edu:2142/87173","repository":{"repo_id":"uiuc","name":"University of Illinois - Urbana-Champaign","base_url":"https://www.ideals.illinois.edu/oai-pmh"},"display":{"title":"A Reexamination of Bias in Management Earnings Forecasts","abstract":"This study finds that short-horizon MEF are pessimistically biased , while long-horizon MEF are optimistically biased. Previous claims that management earnings forecasts are unbiased could be driven by the cancellation effect that occurs between long-term optimistic bias and short-term pessimistic bias. The magnitude of bias is associated with three ex-ante factors---unexpected earnings, forecast horizon and firm size. Although the magnitude of the bias is predictable with these three factors, it seems that investors naively respond to bias component in the forecasts at MEF announcement. The bias in management earnings forecasts causes subsequent stock price reversal when subsequent earnings report are announced. In conclusion, initially, the market mechanistically responds to the biased MEF and subsequently corrects itself by reversing the previous overreaction.","abstract_html":"This study finds that short-horizon MEF are pessimistically biased , while long-horizon MEF are optimistically biased. Previous claims that management earnings forecasts are unbiased could be driven by the cancellation effect that occurs between long-term optimistic bias and short-term pessimistic bias. The magnitude of bias is associated with three ex-ante factors---unexpected earnings, forecast horizon and firm size. Although the magnitude of the bias is predictable with these three factors, it seems that investors naively respond to bias component in the forecasts at MEF announcement. The bias in management earnings forecasts causes subsequent stock price reversal when subsequent earnings report are announced. In conclusion, initially, the market mechanistically responds to the biased MEF and subsequently corrects itself by reversing the previous overreaction.","abstract_has_math":false,"creators":["Choi, Jong-Hag"],"institution":"University of Illinois at Urbana-Champaign","degree_name":"Ph.D.","degree_level":"Dissertation","degree_discipline":"Accountancy","degree_department":null,"school":null,"contributors":["Ziebart, David A."],"advisors":[],"committee_chairs":[],"committee_members":[],"year":2015,"date_issued":"2015-09-28T15:39:26Z","date_published":"2015-09-28T15:39:26Z","updated_at":"2026-07-22T22:26:28Z","subjects":["Business Administration, Accounting"],"languages":["eng"],"rights":[],"rights_urls":[],"identifier_entries":[{"key":"dc:identifier","label":"Identifier","values":["(MiAaPQ)AAI9955599"],"render_values":[{"text":"(MiAaPQ)AAI9955599","href":null,"code":true}]}]},"links":{"outbound_url":"http://hdl.handle.net/2142/87173","outbound_label":"Handle","outbound_source":"dc:identifier"},"metadata_groups":[{"id":"people","label":"People","entries":[{"key":"dc:contributor","label":"Contributor","values":["Ziebart, David A."]},{"key":"dc:creator","label":"Author","values":["Choi, Jong-Hag"]}]},{"id":"academic_context","label":"Academic Context","entries":[{"key":"dc:date","label":"Dc Date","values":["2015-09-28T15:39:26Z","10000-01-01","2000"]},{"key":"dc:type","label":"Dc Type","values":["text"]},{"key":"thesis:degree_discipline","label":"Discipline","values":["Accountancy"]},{"key":"thesis:degree_level","label":"Degree Level","values":["Dissertation"]},{"key":"thesis:degree_name","label":"Degree Name","values":["Ph.D."]},{"key":"thesis:institution_name","label":"Thesis Institution Name","values":["University of Illinois at Urbana-Champaign"]}]},{"id":"subjects_keywords","label":"Subjects and Keywords","entries":[{"key":"dc:subject","label":"Dc Subject","values":["Business Administration, Accounting"]}]},{"id":"language_rights","label":"Language and Rights","entries":[{"key":"dc:language","label":"Dc Language","values":["eng"]}]},{"id":"identifiers","label":"Identifiers","entries":[{"key":"dc:identifier","label":"Identifier","values":["http://hdl.handle.net/2142/87173","(MiAaPQ)AAI9955599"]}]},{"id":"additional","label":"Additional Metadata","entries":[{"key":"dc:description","label":"Description","values":["This study finds that short-horizon MEF are pessimistically biased , while long-horizon MEF are optimistically biased. Previous claims that management earnings forecasts are unbiased could be driven by the cancellation effect that occurs between long-term optimistic bias and short-term pessimistic bias. The magnitude of bias is associated with three ex-ante factors---unexpected earnings, forecast horizon and firm size. Although the magnitude of the bias is predictable with these three factors, it seems that investors naively respond to bias component in the forecasts at MEF announcement. The bias in management earnings forecasts causes subsequent stock price reversal when subsequent earnings report are announced. In conclusion, initially, the market mechanistically responds to the biased MEF and subsequently corrects itself by reversing the previous overreaction.","Made available in DSpace on 2015-09-28T15:39:26Z (GMT). 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Previous claims that management earnings forecasts are unbiased could be driven by the cancellation effect that occurs between long-term optimistic bias and short-term pessimistic bias. The magnitude of bias is associated with three ex-ante factors---unexpected earnings, forecast horizon and firm size. Although the magnitude of the bias is predictable with these three factors, it seems that investors naively respond to bias component in the forecasts at MEF announcement. The bias in management earnings forecasts causes subsequent stock price reversal when subsequent earnings report are announced. In conclusion, initially, the market mechanistically responds to the biased MEF and subsequently corrects itself by reversing the previous overreaction.","Made available in DSpace on 2015-09-28T15:39:26Z (GMT). No. of bitstreams: 2 license.txt: 4848 bytes, checksum: 96035ab3f5e1c23cc7138a224ce498bd (MD5) 9955599.pdf: 6637806 bytes, checksum: b5452380ffdb44779bfae3492eefda76 (MD5) Previous issue date: 2000","Embargo set by: Seth Robbins for item 88454 Lift date: Forever Reason: Restricted to the U of I community idenfinitely during batch ingest of legacy ETDs","Restricted to the U of I community idenfinitely during batch ingest of legacy ETDs","U of I Only","143 p.","Thesis (Ph.D.)--University of Illinois at Urbana-Champaign, 2000."],"dc:identifier":["http://hdl.handle.net/2142/87173","(MiAaPQ)AAI9955599"],"dc:language":["eng"],"dc:subject":["Business Administration, Accounting"],"dc:title":["A Reexamination of Bias in Management Earnings Forecasts"],"dc:type":["text"],"thesis:degree_discipline":["Accountancy"],"thesis:degree_level":["Dissertation"],"thesis:degree_name":["Ph.D."],"thesis:institution_name":["University of Illinois at Urbana-Champaign"]},"updated_at":"2026-07-22T22:26:28Z"}