Research & Publications Office to host seminar on ‘Climate Regulatory Risk and Management Earnings Forecast Errors: Evidence from State-Level Climate Adaptation Plans’ on 24 July
The talk will be delivered by Prof. Anand Jha, Wayne State University
15 July, 2025, Bengaluru: The Office of Research and Publications (R&P) will host a seminar on, ‘Climate Regulatory Risk and Management Earnings Forecast Errors: Evidence from State-Level Climate Adaptation Plans’, to be led by Prof. Anand Jha, Wayne State University (Finance & Accounting area), at 2.30 pm on 24th July 2025, at P22.
Abstract: The research examines how the adoption of a state-level climate adaptation plan (SCAP), which increases climate regulatory risk, affects management earnings forecast errors. The findings show that the finalizations of SCAPs are linked to larger forecast errors. After SCAPs are adopted, firms experience greater volatilities in earnings and investment, while managers develop negative perceptions of regulatory risk and issue more pessimistic forecasts. These forecasts indicate that increased regulatory uncertainty causes managers to overestimate negative effects and underestimate potential positives, leading to more conservative forecasts and larger errors. These results highlight the influence of behavioral biases, particularly loss aversion, as described in the prospect theory (Kahneman and Tversky 1979).
Speaker Profile: Dr. Anand Jha conducts research in corporate finance, with a particular focus on how social norms influence financial outcomes. His work spans a broad range of topics, including financial reporting, bankruptcy, debt covenants, bank competition, strategic alliances, mergers and acquisitions, and small business financing. His research has been published in leading academic journals such as The Accounting Review, Journal of Financial and Quantitative Analysis, Journal of Banking & Finance, Journal of Corporate Finance, and Journal of Business Finance & Accounting.
Dr. Jha holds a PhD in Business Economics from Indiana University in the U.S. and a Bachelor’s Degree in Economics and Mathematics from Wabash College, also in Indiana. He is currently a Professor of Finance and Chair of the Finance Department at Wayne State University in Detroit, Michigan.
Webpage Link: https://ilitchbusiness.wayne.edu/profile/ge3433
Research & Publications Office to host seminar on ‘Climate Regulatory Risk and Management Earnings Forecast Errors: Evidence from State-Level Climate Adaptation Plans’ on 24 July
The talk will be delivered by Prof. Anand Jha, Wayne State University
15 July, 2025, Bengaluru: The Office of Research and Publications (R&P) will host a seminar on, ‘Climate Regulatory Risk and Management Earnings Forecast Errors: Evidence from State-Level Climate Adaptation Plans’, to be led by Prof. Anand Jha, Wayne State University (Finance & Accounting area), at 2.30 pm on 24th July 2025, at P22.
Abstract: The research examines how the adoption of a state-level climate adaptation plan (SCAP), which increases climate regulatory risk, affects management earnings forecast errors. The findings show that the finalizations of SCAPs are linked to larger forecast errors. After SCAPs are adopted, firms experience greater volatilities in earnings and investment, while managers develop negative perceptions of regulatory risk and issue more pessimistic forecasts. These forecasts indicate that increased regulatory uncertainty causes managers to overestimate negative effects and underestimate potential positives, leading to more conservative forecasts and larger errors. These results highlight the influence of behavioral biases, particularly loss aversion, as described in the prospect theory (Kahneman and Tversky 1979).
Speaker Profile: Dr. Anand Jha conducts research in corporate finance, with a particular focus on how social norms influence financial outcomes. His work spans a broad range of topics, including financial reporting, bankruptcy, debt covenants, bank competition, strategic alliances, mergers and acquisitions, and small business financing. His research has been published in leading academic journals such as The Accounting Review, Journal of Financial and Quantitative Analysis, Journal of Banking & Finance, Journal of Corporate Finance, and Journal of Business Finance & Accounting.
Dr. Jha holds a PhD in Business Economics from Indiana University in the U.S. and a Bachelor’s Degree in Economics and Mathematics from Wabash College, also in Indiana. He is currently a Professor of Finance and Chair of the Finance Department at Wayne State University in Detroit, Michigan.
Webpage Link: https://ilitchbusiness.wayne.edu/profile/ge3433