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After reading the Graham, Campbell, and Rajgopal article, you might get the implication for the motivation...

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Accounting

After reading the Graham, Campbell, and Rajgopal article, youmight get the implication for the motivation of voluntarydisclosure. Why does the article suggest that managers’ earningsguidance can destroy the firm’ value?

Because the preparation of the guidance is costly

The earnings guidance can increase agency cost by discouragingmanagers from focusing on long-term value increase

The guidance is generally not accurate, and make confusions inthe market

None of the above

Answer & Explanation Solved by verified expert
3.7 Ratings (585 Votes)
The answer to above is none of above as managers earning guidance can destroy the firma value because of its impact on the share market capital of the company Managers earning guidance means    See Answer
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