Resumen de Managers and analysts: : An examination of mutual influence

Mark Washburn, Philip Bromiley

• Securities analysts’ predictions of firms’ earnings per share constitute important performance targets for those firms. Firm managers attempt to both influence analysts’ targets and achieve the targets. We draw on the impression management literature to offer hypotheses regarding how a firm’s performance relative to prior targets influences the impression management activities of issuing forecast guidance, having conference calls with analysts, and issuing press releases. We also consider the influence of these impression management activities on subsequent analysts’ targets. We test this dyadic representation of impression management activities using a longitudinal panel of large firms. Findings suggest managers take a variety of actions that vary with firm performance, and that some of those actions influence subsequent analyst targets under some conditions.