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

기업의 해외시장 집중화가 애널리스트 성과예측정보에 미치는 영향: 최고경영자 특성의 조절효과

  • Received : 2019.02.07
  • Accepted : 2019.03.03
  • Published : 2019.03.31


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.


Supported by : 고려대학교


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