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dc.contributor.authorGuan, Yuyanen_US
dc.contributor.authorWang, Zhengen_US
dc.contributor.authorWong, Franco M. H.en_US
dc.contributor.authorXin, Xiangangen_US
dc.identifier.citationGuan, Y., Wang, Z., Wong, F. M. H. & Xin, X. (2022). Language and management forecasts around the world*. Contemporary Accounting Research, 39(1), 50-86.
dc.description.abstractSpeakers of weak future-time reference (FTR) languages perceive the future as closer and more imminent. In this study, we examine the important question of whether the FTR properties of languages spoken by investors affect their demand for forward-looking information, thereby influencing corporate management forecast practices in different countries. We predict that investors who speak weak-FTR languages are more concerned about the future prospects of their investments and the ability of company management to respond to future changes, leading to a greater demand for management forecasts from these companies. We find that firms in weak-FTR language countries exhibit a greater propensity for and frequency of issuing management forecasts and that they also issue more long-horizon forecasts, compared to those in strong-FTR language countries. Our results hold after controlling for other country-level cultural factors. Within the same countries, firms with more foreign institutional ownership from weak-FTR countries issue more (long-horizon) management forecasts than their counterparts. Finally, firms from strong-FTR countries significantly increase their issuance of (long-horizon) management forecasts, after cross-listing their stocks in Germany, a weak-FTR country. This is the first study to examine language FTR as an antecedent to voluntary disclosures. We document a linguistic trait as a novel investor environment factor that shapes corporate voluntary disclosures and explains the cross-country variations in management forecast practices.en_US
dc.relation.ispartofContemporary Accounting Researchen_US
dc.rights© 2022 Canadian Academic Accounting Association (CAAA). All rights reserved. This paper was published by Wiley in Contemporary Accounting Research and is made available with permission of Canadian Academic Accounting Association (CAAA).en_US
dc.titleLanguage and management forecasts around the world*en_US
dc.typeJournal Articleen
dc.contributor.schoolCollege of Business (Nanyang Business School)en_US
dc.description.versionSubmitted/Accepted versionen_US
dc.subject.keywordsManagement Earnings Forecastsen_US
dc.subject.keywordsFuture-Time Referenceen_US
dc.description.acknowledgementWe acknowledge financial support from the College of Business at the City University of Hong Kong, the Rotman School of Management at the University of Toronto, and the Social Sciences and Humanities Research Council of Canada.en_US
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