Do Opinions on Financial Misstatement Firms Affect Analysts' Reputation with Investors? Evidence from Reputational Spillovers

• 成果类型: Article
• 署名作者: Lee, Lian Fen; Lo, Alvis K.
• 署名单位: Boston College
• 刊物名称: JOURNAL OF ACCOUNTING RESEARCH
• ISSN/ISSBN: 0021-8456
• DOI: 10.1111/1475-679X.12119
• 发表日期: 2016
• 页码: 1111-1148
• 关键词: SELL-SIDE ANALYSTS; accounting restatements; information-content; FORECAST REVISIONS; EARNINGS FORECASTS; empirical-analysis; SECURITY ANALYSTS; MARKET REACTIONS; ability; FRAUD

摘要

We examine whether opinions on firms subsequently revealed to have misstated earnings affect analysts' reputation with investors. We find that positive opinions by bullish analysts hurt their reputation, leading investors to react less to their research on non-misstatement firms after the misstatement revelation (i.e., negative spillovers). We also find that bearish analysts issuing more negative opinions gain reputation and experience positive spillovers. Finally, for analysts who dropped coverage of the misstatement firm before the misstatement revelation, we find no spillovers, which suggests that analysts experience limited reputational gains when they did not issue a public negative opinion.