Executive extraversion and voluntary disclosure: evidence from management earnings forecasts
Journal
Asia-Pacific Journal of Accounting and Economics
Date Issued
2021
Author(s)
Abstract
In this study we examine whether and how extravert key executives in firms affect the provision of management earnings forecasts and the associated stock market reactions. We provide evidence that firms with extraverted chief financial officers (CFOs) tend to issue more earnings forecasts, earnings forecasts with a higher level of disaggregation, and earnings forecasts accompanied by supplementary information. However, earnings forecasts issued by extraverted CFOs are also less timely, less accurate, and more optimistic. Further analyses show that investors tend to react more strongly to earnings forecasts issued by firms with extraverted CFOs. Our findings therefore suggest that although earnings forecasts issued by extraverted CFOs are not necessarily of better quality, the stock market reactions associated with such forecasts are generally positive. ? 2021 City University of Hong Kong and National Taiwan University.
Subjects
Big five personality
earnings forecast
extraversion
voluntary disclosure
SDGs
Type
journal article