Stability of Executive Team and Quality of Earnings Forecasts
DOI:
https://doi.org/10.6981/FEM.202509_6(9).0017Keywords:
Executive Team Stability; Earnings Forecast Accuracy; Internal Control Quality; Overconfidence.Abstract
This paper takes A-share listed companies from 2010 to 2023 as the research object, and explores how the stability of the executive team affects earnings forecast accuracy. It is found that executive team stability can improve earnings forecast accuracy. Mechanism analysis reveals that executive team stability can improve earnings forecast accuracy by improving the quality of corporate internal control and reducing management overconfidence. The heterogeneity test finds that the promotion effect of executive team stability on earnings forecast accuracy is more significant in state-owned enterprises and mature enterprises. The research in this paper helps to enhance the understanding of executive team stability and provides a new perspective for the capital market and regulators to understand management performance forecasting behaviour.
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