Do Director Networks Help Managers Forecast Better?

IF 4.4 3区 管理学 Q1 BUSINESS, FINANCE
M. Schabus
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引用次数: 6

Abstract

I examine whether directors' superior access to information through their board network improves the accuracy of firms' forecasting. Managers may benefit from well-connected directors (i.e., board centrality) as they may have limited insight into market developments or decision-making processes of other firms beyond knowledge specific to their firm. Employing a sample of U.S.-listed companies, I separately examine the effect of within-firm variation in direct and indirect board connections on management earnings forecast accuracy. The study contributes by showing that higher-degree connections can have an economically significant effect on the accuracy of management forecasts, regardless of firms' board interlocks. Further analyses point toward well-connected directors' ability to provide managers with valuable advice in a forecasting context, which complements directors' more extensively studied role in preventing managerial expropriation.
主管关系网能帮助经理更好地预测吗?
我考察了董事通过其董事会网络获取信息的优势是否提高了公司预测的准确性。管理者可能会受益于关系良好的董事(即董事会中心),因为他们对市场发展或其他公司决策过程的了解可能有限,超出了他们公司的特定知识。我以美国上市公司为样本,分别考察了公司内部董事会直接和间接联系的变化对管理层盈余预测准确性的影响。该研究的贡献在于表明,无论公司的董事会是否相互关联,更高程度的联系都能对管理层预测的准确性产生重大的经济影响。进一步的分析指出,关系良好的董事有能力在预测背景下为经理提供有价值的建议,这补充了董事在防止管理层征用方面更广泛研究的作用。
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来源期刊
Accounting Review
Accounting Review BUSINESS, FINANCE-
CiteScore
5.80
自引率
2.40%
发文量
110
期刊介绍: The Accounting Review ‘‘should be viewed as the premier journal for publishing articles reporting the results of accounting research and explaining and illustrating related research methodology. The scope of acceptable articles should embrace any research methodology and any accounting-related subject, as long as the articles meet the standards established for publication in the journal
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