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Leavey School of Business Santa Clara University
Department ofAccounting

Selected Publications

Pressures From Media Coverage: Evidence on Managing Earnings Guidance

Matthew Cedergren, Assistant Professor of Accounting

Journal of Accounting, Auditing, and Finance (forthcoming)

M. Cedergren., Ting Luo, Xing Xiao, Jianqiao Yu ; Pressures From Media Coverage: Evidence on Managing Earnings Toward Guidance. Journal of Accounting, Auditing & Finance (forthcoming)  https://doi.org/10.1177/0148558X221132607


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Abstract

This study investigates whether media attention pressures managers to live up to market expectations. Using a comprehensive dataset of media coverage on U.S. public firms, we find that media coverage pressures, rather than deters, managers to manipulate reported earnings to reduce management forecast errors, and the effect is mainly driven by the media’s information dissemination role rather than its information creation role. In addition, we show that the association is stronger when firms face higher litigation risk, when managers have higher reputational concerns, and when corporate governance is weaker. Our findings provide new insights into a potentially negative effect of media coverage in the capital markets.

Research
LSB Research, ACTG, Forthcoming, Matthew Cedergren