Earnings and Non-Earnings Forward-Looking Disclosures: Complements or Substitutes?

Berkeley and the University of Florida for useful input and Jimmy Lee, Jerry Liu, Delius Mak, and Jie Zhou for data collection. Earnings and Non-Earnings Forward-Looking Disclosures: Complements or Substitutes? Managers can disclose a portfolio of various types of forward-looking information beyond earnings guidance. Two common non-earnings forward-looking disclosures are capital expenditures and strategic plan disclosures. Our study examines whether and when managers used these disclosures as complements to or substitutes for earnings guidance. We find these disclosures are used as complements by some firms and as substitutes by others. We document when these disclosures serve as complements, when as substitutes, and when they are provided regardless of the provision of earnings guidance. In addition, we describe managers ’ portfolio of forward-looking signals, varied in both disclosure type and forecast horizon, and find that the additional disclosures are associated with a furthe