The Journal of Management Accounting, Japan
Online ISSN : 2434-0529
Print ISSN : 0918-7863
Articles
Management Forecasts Ratcheting and its Effect on Management Forecast Errors: Management Accounting Perspective
Kenji Yasukata
Author information
JOURNAL FREE ACCESS

2016 Volume 24 Issue 1 Pages 3-25

Details
Abstract

The Stock Exchange in Japan requires Japanese firms listed on the exchange to report management earnings forecasts in their annual press releases. Recent questionnaire surveys on management forecasts have revealed that they are closely linked with internal budgets. This finding calls for the management accounting perspective when studying management earnings forecasts. The purpose of this study is to explain the management earnings forecasts and forecast errors based on the idea of budget ratcheting. The empirical analysis indicates that budget ratcheting has an impact on management earnings forecasts and forecast errors, suggesting that management accounting approach enriches our understanding of management earnings forecasts.

Content from these authors
© 2016 The Japanese Association of Management Accounting
Next article
feedback
Top