Pseudo-precision?: Precise forecasts and impression management in managerial earnings forecasts

Title: Pseudo-precision?: Precise forecasts and impression management in managerial earnings forecasts
Creator: Hayward, Mathew L. A.; Fitza, Markus A.
Relation: Academy of Management Journal Vol. 60, Issue 3, p. 1094-1116
Publisher Link: http://dx.doi.org/10.5465/amj.2014.0304
Publisher: Academy of Management
Resource Type: journal article
Date: 2017
Description: We examine earnings guidance precision as a mechanism of organization impression management (OIM) and, specifically, suggest that strategic leaders use more precise earnings forecasts as an OIM tactic to convey a greater sense of authority and control over organizational performance after material organizational setbacks. Contributing to the OIM literature, we argue that the use of more precise judgment makes use of different psychological mechanisms compared to kinds of OIM that have been previously studied. The results presented here suggest that (a) OIM is an important motivation for more precise earnings forecasts, (b) precision as an OIM tactic is more likely to arise when managers convey impressions of brighter performance prospects, and (c) investors generally respond favorably to the tactic.
Subject: OIM; organizational performance; earnings forecasts; forecast precision
Identifier: http://hdl.handle.net/1959.13/1389841
Identifier: uon:32936
Identifier: ISSN:0001-4273
Language: eng
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