Retail execs underplay current performance to investors - but why?

In quarterly earnings calls with investors and analysts, some retail managers may underplay how their companies are actually performing, according to recent research by Kenneth Froot and colleagues.

Retail executives aren’t always giving stockholders the straight scoop about the financial standing of their companies in comments around earnings announcements—and some may be providing misleading information, potentially for their own benefit.

That’s the upshot of new research by retired Harvard Business School finance professor Kenneth A. Froot in the April working paper What Do Measures of Real-Time Corporate Sales Tell Us about Earnings Surprises and Post-Announcement Returns?

Read full article

Recent Posts

State Street Live: State Street Retreat, 2021: North America and EMEA 6/15/2021 Gideon Ozik joined Neil Clark to discuss high-frequency FX execution insights on market turbulence, volumes, liquidity a

Behavioural finance helps explain why young investors act in unexpected ways Financial Times, March 11, 2021 The FT piece by Gillian Tett (https://www.ft.com/content/89c95e78-ec7f-4d06-9ea8-a9b19a5ed6