|
|||||
|
|
The superiority and disciplining role of independent analysts |
|
| Authors: | Zhaoyang Gu Jian Xue |
| Affiliation: | aTepper School of Business, Carnegie Mellon University, Pittsburgh, PA 15213-3890, USA;bSchool of Economics and Management, Tsinghua University, Beijing 100084, China;cSchool of Business and Management, Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong |
| Abstract: | 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. |
| Keywords: | Financial analysts Analyst independence Forecast accuracy and bias Earnings response coefficients Global Research Analyst Settlement |
| 本文献已被 ScienceDirect 等数据库收录！ | |