A study of the association between management, analysts,and capital market

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I investigate how the management of Japanese firms makes earnings forecasts, and analysts and the market will react these forecasts. I find(1) management in Japan makes initial forecasts, taking into account the comparison with earnings in thisyear;(2) the management prefer conservative initial forecasts, because the market positively reacts the firms which meet or beat management and/or analysts forecasts;(3) analysts and the market judge the accuracy of management initial forecasts to some extent, but do not react completely.