Stock Price Reactions to On-Target Earnings Announcements Implications for Earnings Management William Baber Sok-Hyon Kang The George Washington University School of Business and Public Management 710 21 st Street, NW Washington, DC 20052 Current version: September 2001 v. 3.4 Comments welcome Baber:baber@gwu.edu (202) 994-5089 Kang: sokkang@gwu.edu (202) 994-6058 JEL classification M41 We thank Chris Jones, Krishna Kumar, Karen Taranto, Kumar Visvanathan, and workshop participants at the University of Cincinnati, the George Washington University, the Pennsylvania State University, Texas A&M University, and Virginia Commonwealth University for helpful comments. We are especially grateful to Shyam Sunder for his help and guidance. A portion of this study was conducted while Kang was at Yale University. We also thank First Call, and Stanley Levine in particular, for providing the analyst forecast data.