UConn Researcher Discovers that Retail Execs Downplay, Mislead Outlook in Reports to Stockholders
Many CEOs from major U.S. retailers tend to soften, possibly even distort, their company’s financial standings and offer stakeholders pessimistic predictions about the future, even when their companies are thriving.Continue Reading
Forbes – 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.
CBS News – When publicly traded companies report their quarterly results, executives typically talk with investors on a conference call to update them on the current-quarter and expected business trends. But it turns out that many of those executives may not be telling the truth.
Bloomberg – It won’t surprise any market-watcher to learn that in the run-up to earnings season, companies tend to lower the bar for top and bottom line performance, thereby giving themselves better odds of exceeding analysts’ expectations.
However, a new working paper suggests that the sins of omission that occur during the corporate “cheating” season, as it was dubbed by Societe Generale Global Head of Quantitative Strategy Andrew Lapthorne, are far more insidious.