Pevzner, Mikhail2017-06-282017-06-282007Pevzner, Mikhail, Management Earnings Forecasts, Information Asymmetry, and Liquidity: An Empirical Investigation (July 2007).10.2139/ssrn.994960http://hdl.handle.net/11603/4273This study investigates (1) whether forecasting firms have lower liquidity prior to the issuance of a management-earnings forecast than non-forecasting firms and (2) whether forecasting earnings has a persistent affect on a firm's liquidity. I find that, first, forecasting firms have greater liquidity in the period prior to a forecast. Second, while issuing forecast increases liquidity in over short windows, this effect is not significant over longer windows. Third, initiating or ceasing the issuance of earnings forecasts has no significant long-term effect on the firm's liquidity. Combined, these results suggest that management earnings forecasting decision does not appear to be driven by liquidity-improvement goals, and that management earnings forecasts do not appear to strongly affect firms' liquidity.65 pagesen-USManagement Earnings ForecastsInformation AsymmetryLiquidityText