The superiority and disciplining role of independent analysts

• 成果类型: Article
• 署名作者: Gu, Zhaoyang; Xue, Jian
• 署名单位: Carnegie Mellon University; Tsinghua University; Hong Kong University of Science & Technology
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2008.02.002
• 发表日期: 2008
• 关键词: EARNINGS FORECASTS; performance; Informativeness; recommendations; determinants; expectations; STREET; FIRMS; GAAP; BIAS

摘要

We show that although forecasts of independent analysts are less accurate ex post, they yield forecast errors that are more strongly associated with abnormal stock returns. This suggests that forecasts of independent analysts are superior to those of nonindependent analysts in representing ex ante market expectations. We also show that forecasts of nonindependent analysts become more accurate and less biased, and produce forecast errors more strongly associated with abnormal stock returns when independent analysts are following the same firms than when they are not. This suggests that the presence of independent analysts disciplines the behavior of nonindependent analysts. (c) 2008 Elsevier B.V. All rights reserved.