McKinsey is leading a growing backlash against companies providing guidance on earnings, after concluding the quarterly ritual increases share price volatility and short-termist management.

The consultancy, which advises many of corporate America's biggest names, argues that Wall Street's addiction to company forecasts may be doing more harm than good. The conclusions - in a research paper by one of its top corporate finance partners - align with the mood of companies such as Citigroup, Motorola, Intel, Ford and General Motors that now limit how much guidance they give.