Analysts’ foreign ancestral origins and firms’ information environment

Purpose The purpose of this study is to examine whether and how analysts’ foreign ancestral origins would have an effect on earning forecasts in particular ultimately firms’ information environment general. Design/methodology/approach By inferring countries based their surnames, empirically examines affect earnings forecast errors. Findings Using novel data from more than 110 countries, finds that relative analysts with common American surnames tend higher positive relation between analyst errors likely be observed for African-American whose ancestry are geographically apart the USA. In contrast, when aligned CEOs, exhibit lower surnames. More importantly, results show firms followed by Originality/value Taken together, findings consistent conjecture geographical, social ethnical proximity managers environment. Therefore, contributes determinants adds literature