Earnings Expectations and the Quality of Financial Services

Shi, Xiaomeng; Nguyen, Duc Duy (Louis); Wang, Mingzhu

Abstract

Using complaint data filed by consumers with the Consumer Financial Protection Bureau
against financial institutions, we show that banks receive, on average, 13.3% more customer
complaints in the quarter immediately after they narrowly beat analysts’ earnings forecasts. The
effect is mainly driven by banks’ attempts to reduce their non-interest expenses to beat earnings
benchmarks. The relationship is stronger when bank CEOs receive a greater proportion of
incentive-based compensation. Overall, our p

Citation

Shi, X., Nguyen, . D. D. (., & Wang, M. (2023). Earnings Expectations and the Quality of Financial Services. Journal of Accounting and Public Policy, 42(4), Article 107115. https://doi.org/10.1016/j.jaccpubpol.2023.107115

• Journal Article Type: Article
• Acceptance Date: Jul 3, 2023
• Online Publication Date: Jul 13, 2023
• Publication Date: 2023-07
• Deposit Date: Aug 15, 2023
• Publicly Available Date: Aug 16, 2023
• Journal: Journal of Accounting and Public Policy
• Print ISSN: 0278-4254
• Electronic ISSN: 1873-2070
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 42
• Issue: 4
• Article Number: 107115
• DOI: https://doi.org/10.1016/j.jaccpubpol.2023.107115
• Public URL: https://durham-repository.worktribe.com/output/1717627