Gag Rules and Silly Regs Harm Investors

Forbes, Steve
June 2006
Forbes Asia;6/5/2006, Vol. 2 Issue 10, p13
The article presents views on proposals and regulations in the U.S. related to investors which have good intentions but with wrong implementation. A number of investors are not in favor of the proposed management guidance concerning quarterly earnings. The author believes that the decision on earnings forecasts should be made by the management and not politicians or regulators.


Related Articles

  • The Effect of Ex Ante Management Forecast Accuracy on the Post-Earnings-Announcement Drift. Li Zhang // Accounting Review;Sep2012, Vol. 87 Issue 5, p1791 

    I examine the effect of ex ante management forecast accuracy on the post-earnings-announcement drift when management forecasts about next quarter's earnings are bundled with current quarter's earnings announcements. I build a composite measure of ex ante management forecast accuracy that takes...

  • BEHIND THE NUMBERS. Keenan, Charles // Black Enterprise;Jul2008, Vol. 38 Issue 12, p35 

    The article discusses the advantage for investors of assessing the actual quality of the earnings of a company, rather than fixating on how much the company is earning. The practice of measuring earnings quality can help in identifying which companies are best positioned to make their...

  • The accuracy of IPO earnings forecasts in Thailand and their relationships with stock market valuation. Lonkani, Ravi; Firth, Michael // Accounting & Business Research (Wolters Kluwer UK);2005, Vol. 35 Issue 3, p269 

    In order to help reduce information asymmetry between managers and prospective investors, IPO prospectuses in Thailand are required to publish managers' forecasts of the forthcoming year's earnings. This type of direct disclosure is especially important in a developing economy such as Thailand...

  • Industry vets question RadioShack's policy shifts. Howe, Aleshia // Fort Worth Business Press;7/24/2006, Vol. 19 Issue 30, p1 

    The article reports on the reaction of bank industry veterans to the decision of RadioShack Corp. to end its quarterly earnings release conference calls. Mark Coker, founder of BestCalls.com, views that companies must struggle to gain investors' trust. Kay Jackson, senior director at RadioShack,...

  • Consecutive Earnings Surprises: Small and Large Trader Reactions. Shanthikumar, Devin M. // Accounting Review;Sep2012, Vol. 87 Issue 5, p1709 

    Prior research demonstrates that investors respond differently to earnings surprises that are part of a string of consecutive earnings increases or surprises than to those that are not. To shed light on who values these patterns, I compare trading responses of small and large traders to earnings...

  • An Empirical Analysis of CEO Risk Aversion and the Propensity to Smooth Earnings Volatility. Abdel-Khalik, A. R. // Journal of Accounting, Auditing & Finance;Spring2007, Vol. 22 Issue 2, p201 

    Volatility of firm performance is one measure of firm-specific risk that is priced in the marketplace. Because CEOs are typically undiversified investors in their companies' stocks, the negative valuation effects of this risk are asserted to provide them the incentive to reduce earnings...

  • MANAGEMENT OF COMPANIES ADMIN & SUPPORT & WASTE MGT SERVICES.  // U.S. Industry Quarterly Review: Services - Others;2004 1st Quarter, p178 

    The article presents statistics related to management of companies administration and support and waste management services in the U.S. According to the rating agency Global Insights, there was an increase in revenue from $1060.7 billion in the first quarter of 2003 to $1100 billion in the third...

  • RECOMMENDATION.  // Equities Special Situations;Mar/Apr2005, Issue 516, p2 

    Presents the recommendation from United Online Inc. for all small capital investors in the U.S. that will help stabilize the stock prices, which was recently down by 52 percent from its 52-week high of 20.75 dollars. Contributions of United Online to Internet subscribers; Potential earnings per...

  • The Dynamics of Earnings Forecast Management. BERNHARDT, DAN; CAMPELLO, MURILLO // Review of Finance;Jun2007, Vol. 11 Issue 2, p287 

    This paper examines whether firms manage analyst forecasts and the associated value consequences. We find that earnings forecasts tend to grow pessimistic over the forecast horizon and these forecast changes and their timing are key determinants of whether firms generate positive earnings...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics