Management Forecasts, Analyst Revisions, and Investor Reactions: The Effect of CEO Gender

Date
2019-08-28
Authors
Cook, Alison
Esplin, Adam
Glass, Christy
Judd, J. Scott
Olsen, Kari
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Abstract
In this study, we examine whether CEO gender affects the likelihood of management forecast issuance, forecast properties, and subsequent reactions from analysts and investors. We use a panel data set of CEO transitions between 2000 and 2015 to test our hypotheses. We find that while women CEOs are more likely to issue earnings forecasts after a CEO transition, the characteristics of forecasts issued by women and men CEOs do not differ. Furthermore, we find that CEO gender significantly affects analyst and investor reactions. In particular, we find that analysts and investors demonstrate a more tempered reaction to good news forecasts issued by women CEOs compared to men CEOs. Overall, our findings suggest that analysts and investors find management forecasts issued by women CEOs to be less credible than forecasts issued by men CEOs despite no apparent differences in their forecast properties.
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Keywords
CEO Gender, Management Forecasts, Analyst Revisions
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