Language and Management Forecasts around the World

Speaker: Prof. Guan Yuyan (City University of Hong Kong)

Topic:	Language and Management Forecasts around the World
Time&Date:	10:30 am -12:00 pm, 2019/10/30 (Wednesday)
Venue:	Room W202, Administration Building
Speaker:	Prof. Guan Yuyan (City University of Hong Kong)
Abstract:	We predict that investors who speak weak future-time reference (FTR) languages are more concerned about the future prospects of the companies they invest in and, hence, demand more forward-looking information from these companies. We find that firms in weak-FTR language countries exhibit a greater propensity and frequency of issuing management forecasts. Within the same countries, firms with more foreign institutional ownership from weak-FTR countries issue more management forecasts than their counterparts. After having their shares traded in the stock market of a weak-FTR country, foreign firms from strong-FTR countries significantly increase their management forecast propensity and frequency.