When Missing the Mark Means Raising It: How Firms Use Overestimated Earnings Targets (IMAGE)

Waseda University

When Missing the Mark Means Raising It: How Firms Use Overestimated Earnings Targets

Caption

After missing earnings goals, many firms set even higher targets to shift investor focus toward a brighter future, despite a 65% failure rate. This infographic shows how companies use overly ambitious forecasts as a strategic tool, and how institutional investors, analysts, and female directors help keep them in check. Based on a study of 3,273 Japanese firms by researchers from Japan and Korea.

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Professor Konari Uchida from Waseda University

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