This paper studies the capital market consequences of managers establishing an
individual forecasting style. Using a manager-firm matched panel dataset, I examine
whether and when manager-specific credibility matters. If managers’ forecasting styles
affect their perceived credibility, then the stock price reaction to forecast news should
increase with managers’ prior forecasting accuracy. Consistent with this prediction,
I find that the stock price reaction to management forecast news is stronger when
information uncertainty is high and when the manager has a history of issuing more
accurate forecasts, indicating that individual managers benefit from establishing a
personal disclosure reputation.