Analyst independence and earnings management

We examine whether analyst independence contributes to analysts’ monitoring role in deterring accruals earnings management. first report a negative association between management and the ratio of independent analysts brokerage covering firm. Next, through lens promotion sell-side research institutions by 2003 Global Research Analyst Settlement, we document significant decrease on firms affected Settlement's mandate for time-limited support back institutions. Additionally, find that, as aforementioned ended, extent effectiveness reverted level indistinguishable from that before Settlement. Finally, using closures mergers quasi-natural experiment, provide corroborating evidence consistent with leading more effective monitoring.