Debt maturity structure and the quality of management earnings forecasts: evidence from China

We investigate the relationship between debt maturity structure and the quality of management earnings forecasts (MEFs). The study finds that refinancing risk arising from long-term debt maturity negatively affects the quality of MEFs. Additionally, the study reveals that firms are more likely to utilize MEFs strategically when long-term debt maturities fall within the period between MEFs and actual earnings reports. The practice of issuing low-quality MEFs by firms facing refinancing risk primarily involves obscuring losses.