S&P 500 Index Revisions And Analyst Coverage

Analyst Coverage and Earnings Management

Do analysts serve as external monitors to managers, or do they put excessive pressure on managers? This study examines the role analysts play in corporate governance by focusing on the effect that their scrutiny has on earnings management. Controlling for other firm characteristics, including institutional ownership, I find that firms followed by more analysts manage their earnings less. To add...

Management Earnings Forecasts and Value of Analyst Forecast Revisions

Prior studies evaluate the relative importance of the sources of value that financial analysts bring to the market based on the price impact of forecast revisions over the event time. We find that management earnings forecasts influence the timing and precision of analyst forecasts. More importantly, evidence suggests that prior studies’ finding of weaker (stronger) stock-price responses to for...

“ Analyst Coverage and Earnings Management ” on

This study investigates the effect of analyst coverage on both accrual-based and real earnings management. Regarding accrual-based earnings management, I find that firms followed by more analysts engage in less accruals management and that more experienced analysts seem to be more effective in constraining accruals management, consistent with the role of analysts as external monitors to manager...

Analyst Coverage and the Glamour Discount

Information Conveyed in Announcements of Analyst Coverage*

This paper examines the security market response to the announcement of sell-side analysts' decisions to initiate coverage of a firm. We examine the market reaction to the initiation announcement and the accompanying investment recommendation, by disaggregating our sample based on existing analyst coverage at the announcement date. We find, on average, a significantly larger, positive stock pri...