Managerial tools used to meet or beat analyst forecasts: Evidence from the UK

Yousuf Khamis Hamed Al Mabsali, Rob Hayward, Yasser Eliwa

    Research output: Contribution to journalArticlepeer-review


    This paper examines the tools that managers use to meet or beat analyst forecasts in the post-International Financial Reporting Standards (IFRS) period, using a sample of UK firms for the period 2005 to 2015. Our results are consistent with the view that managers utilize both classification shifting and managerial guidance to hit analyst forecasts. The results suggest that managers are more likely to continue to exercise their discretion in using these two tools following the adoption of IFRS. This paper supports the argument that managers engage in classification shifting, and IFRS adoption is more likely to increase market demand for more disclosuresthrough managerial guidance. In contrast, there is weak evidence to suggest that real earnings management or accrual earnings management are used to hit analyst forecasts. Our results are expected to be of interest to policymakers, regulators, and external auditors
    Original languageEnglish
    Article number100383
    JournalJournal of International Accounting, Auditing and Taxation
    Publication statusPublished - 16 Mar 2021


    • Earnings managementManagerial toolsHitting analyst forecastsManagerial guidance
    • Managerial tools
    • Managerial guidance
    • Hitting analyst forecasts
    • Earnings management


    Dive into the research topics of 'Managerial tools used to meet or beat analyst forecasts: Evidence from the UK'. Together they form a unique fingerprint.

    Cite this