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http://dx.doi.org/10.15813/kmr.2019.20.1.009

The Effects of Firms' Foreign Market Focus on the Bias of Analysts' Earnings Forecasts: Focusing on CEO Characteristics  

Cho, Hyejin (고려대학교 경영대학)
Ahn, He Soung (세종대학교 경영대학)
Publication Information
Knowledge Management Research / v.20, no.1, 2019 , pp. 195-213 More about this Journal
Abstract
This paper investigates the effects of firms' foreign market focus on the optimistic bias of analysts' earnings forecasts. Based on a sample of 852 U.S. manufacturing firms between 1994 and 2015, our empirical results suggest that higher growth of foreign market focus is associated with greater levels of analysts' forecast optimism. Drawing on the CEO career horizon and the upper echelon theory literature, we find evidence that CEOs' career horizon and functional background as a CFO moderates the relationship between the growth rate of foreign market focus and analysts' forecast optimism. This shows that while financial analysts perceive internationalization strategies as signaling growth potential, such perception can vary depending on CEOs' individual characteristics.
Keywords
Foreign market focus; Analyst forecast; Earnings forecast; CEO; Knowledge creation;
Citations & Related Records
Times Cited By KSCI : 1  (Citation Analysis)
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