Refer to the study by Bozanic, Roulstone, and Van Buskirk (2018) in Section 12.8.2.

Required

a. Based on the results of their study concerning standalone future-oriented statements, do these statements constitute a signal? Explain why or why not.

b. The authors also found that as firm uncertainty increased, managers made fewer quantitative earnings forecasts but supplied more qualitative future-oriented information. Suggest why managers would make fewer quantitative forecasts but more qualitative forecasts in the face of increasing uncertainty. Consider the disclosure principle in your answer.