Author(s)

Jingyue Zhang

Corresponding Author

Jingyue Zhang

ABSTRACT

In this study, I examine the impact of CEO individualism on management forecasts (MFs) based primarily on individualism data collected by Hofstede [1]. I found that CEO individualism influences a company’s decision whether to make MFs voluntarily as well as the tone of information disclosures. In addition, cross-sectional tests showed that firms with poor corporate governance were more likely to be influenced by informal aspects of corporate culture, including individualism, when making MFs. Overall, I demonstrate here the significance of taking into account information related to CEOs’ individualism when assessing the accuracy of the information presented in MFs.

KEYWORDS

Cultural background, CEO individualism, management forecasts, corporate governance