The Influence of COVID-19 Pandemic on Management Earnings Forecasts
As the biggest black swan event of 2020, the COVID-19 pandemic has significantly weakened the ability of corporate stakeholders to monitor companies on site. In this context, exploring whether the on-site supervision restrictions triggered by the COVID-19 pandemic affect management earnings forecast...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Frontiers Media S.A.
2022-07-01
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| Series: | Frontiers in Psychology |
| Subjects: | |
| Online Access: | https://www.frontiersin.org/articles/10.3389/fpsyg.2022.918560/full |
| _version_ | 1811226966599139328 |
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| author | Xiangfei Fu Yuanze Xu Fangfang Zhou Libin Zhao |
| author_facet | Xiangfei Fu Yuanze Xu Fangfang Zhou Libin Zhao |
| author_sort | Xiangfei Fu |
| collection | DOAJ |
| description | As the biggest black swan event of 2020, the COVID-19 pandemic has significantly weakened the ability of corporate stakeholders to monitor companies on site. In this context, exploring whether the on-site supervision restrictions triggered by the COVID-19 pandemic affect management earnings forecast disclosure is crucial to protect investors' interests and promote the stable development of the capital market. Based on quarterly data of Chinese A-share listed companies' earnings forecasts, this paper finds that: First, when the company's registry region is more severely affected by the COVID-19 pandemic, the company has less willingness to disclose its management earnings forecast. And those released forecasts tend to have lower qualities. Second, a higher level of media monitoring and a better legal environment can mitigate the negative impacts of the COVID-19 pandemic on both the willingness and the quality of management earnings forecast disclosure. Furthermore, mediating effect analysis shows that, the reduced on-site monitoring activities that were originally implemented by independent directors, institutional investors, and analysts during the epidemic period greatly limited stakeholders' monitoring efficiency, and thus cause significant influence on the disclosure of management earnings forecasts. |
| first_indexed | 2024-04-12T09:33:27Z |
| format | Article |
| id | doaj.art-54975a4580f846b8b514743958d7c243 |
| institution | Directory Open Access Journal |
| issn | 1664-1078 |
| language | English |
| last_indexed | 2024-04-12T09:33:27Z |
| publishDate | 2022-07-01 |
| publisher | Frontiers Media S.A. |
| record_format | Article |
| series | Frontiers in Psychology |
| spelling | doaj.art-54975a4580f846b8b514743958d7c2432022-12-22T03:38:17ZengFrontiers Media S.A.Frontiers in Psychology1664-10782022-07-011310.3389/fpsyg.2022.918560918560The Influence of COVID-19 Pandemic on Management Earnings ForecastsXiangfei Fu0Yuanze Xu1Fangfang Zhou2Libin Zhao3School of Accounting, Institute of Intelligent Management Accounting and Internal Control, Nanjing Audit University, Nanjing, ChinaSchool of Economics and Management, Beijing Jiaotong University, Beijing, ChinaSchool of Accounting, Wuhan Textile University, Wuhan, ChinaSchool of Accounting, Wuhan Textile University, Wuhan, ChinaAs the biggest black swan event of 2020, the COVID-19 pandemic has significantly weakened the ability of corporate stakeholders to monitor companies on site. In this context, exploring whether the on-site supervision restrictions triggered by the COVID-19 pandemic affect management earnings forecast disclosure is crucial to protect investors' interests and promote the stable development of the capital market. Based on quarterly data of Chinese A-share listed companies' earnings forecasts, this paper finds that: First, when the company's registry region is more severely affected by the COVID-19 pandemic, the company has less willingness to disclose its management earnings forecast. And those released forecasts tend to have lower qualities. Second, a higher level of media monitoring and a better legal environment can mitigate the negative impacts of the COVID-19 pandemic on both the willingness and the quality of management earnings forecast disclosure. Furthermore, mediating effect analysis shows that, the reduced on-site monitoring activities that were originally implemented by independent directors, institutional investors, and analysts during the epidemic period greatly limited stakeholders' monitoring efficiency, and thus cause significant influence on the disclosure of management earnings forecasts.https://www.frontiersin.org/articles/10.3389/fpsyg.2022.918560/fullthe COVID-19 pandemicmanagement earnings forecastsmedia monitoringlegal environmenton-site monitoring activities |
| spellingShingle | Xiangfei Fu Yuanze Xu Fangfang Zhou Libin Zhao The Influence of COVID-19 Pandemic on Management Earnings Forecasts Frontiers in Psychology the COVID-19 pandemic management earnings forecasts media monitoring legal environment on-site monitoring activities |
| title | The Influence of COVID-19 Pandemic on Management Earnings Forecasts |
| title_full | The Influence of COVID-19 Pandemic on Management Earnings Forecasts |
| title_fullStr | The Influence of COVID-19 Pandemic on Management Earnings Forecasts |
| title_full_unstemmed | The Influence of COVID-19 Pandemic on Management Earnings Forecasts |
| title_short | The Influence of COVID-19 Pandemic on Management Earnings Forecasts |
| title_sort | influence of covid 19 pandemic on management earnings forecasts |
| topic | the COVID-19 pandemic management earnings forecasts media monitoring legal environment on-site monitoring activities |
| url | https://www.frontiersin.org/articles/10.3389/fpsyg.2022.918560/full |
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