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Sustainability 2017, 9(6), 908;

Achieving Revenue Benchmarks Conditional on Growth Properties

College of Business, Hankuk University of Foreign Studies, 107 Imun-ro, Dongdaemun-gu, Seoul 02450, Korea
Seaver College, Business Division, Pepperdine University, Malibu, CA 90263, USA
Author to whom correspondence should be addressed.
Academic Editors: Fabio Carlucci and Giuseppe Ioppolo
Received: 16 March 2017 / Revised: 27 April 2017 / Accepted: 19 May 2017 / Published: 28 May 2017
(This article belongs to the Section Economic, Business and Management Aspects of Sustainability)
Full-Text   |   PDF [253 KB, uploaded 30 May 2017]


This study examines whether certain firm characteristics, specifically growth properties, are associated with the likelihood of achieving market expectations for revenues, as well as which mechanism (revenue manipulation or expectation management) growth firms utilize in order to avoid missing these expectations. The results show that growth firms are more likely to meet or exceed analyst revenue forecasts than non-growth firms. We also find that growth firms are more inclined to manipulate their reported revenues upwards, and less inclined to guide market expectations for revenues downward, in order to meet or beat expected revenues relative to non-growth firms. These findings suggest that window-dressing activities by growth firms may not be sustainable in the long-run and can misguide users of financial statements in their decision-making. View Full-Text
Keywords: growth; sustainability; revenue manipulation; revenue expectations management; revenue forecasts growth; sustainability; revenue manipulation; revenue expectations management; revenue forecasts
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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Son, D.H.; Lim, D. Achieving Revenue Benchmarks Conditional on Growth Properties. Sustainability 2017, 9, 908.

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