A research group led by Associate Professor Kotan Senba of the Graduate School of Economics, Nagoya University has found that the management forecast information voluntarily disclosed by the management is more accurate than the information forced to be disclosed by the regulatory authorities.
According to Nagoya University, the research group analyzed the management forecast information of the Chinese market issued from 2005 to 2007, and the information that the regulator forcedly disclosed based on the rules and the information that the management voluntarily disclosed. We investigated which was more accurate and what kind of difference was made between the predicted stock price and the actual stock price.
As a result, it was clarified that the voluntarily disclosed management forecast information is superior in terms of accuracy to the compulsory disclosure, and the same result is obtained for the forecast stock price.
In business administration and accounting, it is recognized that management forecast information sent by management outside the company is important to close the information gap between management and investors, but previous research has shown that compulsory disclosure is excellent. On the other hand, there are some criticisms that compulsory disclosure is not universal.
For this reason, the research group focused on China, where there are groups that publish management forecast information through compulsory disclosure and groups that publish management forecast information through voluntary disclosure, and analyzed the forecast information.
Paper information:[Asia-Pacific Journal of Accounting & Economics] Mandatory vs. voluntary disclosure of management forecast in China
