Research On The Impact Of Management Earnings Forecast On Accounting Conservatism

The management earnings forecast is the management's forecast of the company's future performance.It is an important supplement to the listed company's reported accounting earnings information,which can alleviate and reduce the information asymmetry between the company and external investors.Research has found that management judgment has a substitution effect on accounting conservatism,so what is the relationship between earnings forecast covering management judgment and accounting conservatism?This paper sorts out the relevant literatures on management earnings forecast and accounting conservatism at home and abroad.Based on the 2013-2017 main board listed company data as research samples,the Basu model is used to empirically study the impact of management earnings forecast on accounting conservatism.On this basis,combined with China's unique management earnings forecasting system,we further explore the impact of different types of management earnings forecast on accounting conservatism.The final research results show that: First,management earnings forecast can significantly reduce accounting conservatism.Second,the voluntary release of management earnings forecast can significantly reduce the accounting conservatism than the mandatory disclosure of management earnings forecast.Third,in voluntary disclosure of management earnings forecasts,"good" management earnings forecasts are more likely to reduce accounting robustness than "bad" management earnings forecasts.Based on the above research conclusions,relevant suggestions are proposed: First,improve China's management earnings forecasting system.Second,strengthen management and closely monitor "bad news" management earnings forecasts.Third,investors should focus on voluntary disclosure of management earnings forecasts and "good news" management earnings forecasts.The innovation of this paper lies in the following aspects: First,it details the influence of management judgment on accounting conservatism,and further explores and compares the influence of "good news" management earnings forecast and "bad news" management earnings forecast on accounting conservatism.Second,this paper evaluates the management earnings forecasting system in China from the perspective of comparing the impact of mandatory disclosure of management earnings forecasting and voluntary release of management earnings forecasting on accounting conservatism.