Do ties still bind? Analyst behaviour after financial restatements

IF 3.1 4区管理学 Q2 BUSINESS, FINANCE

Accounting and Finance Pub Date : 2023-10-05 DOI:10.1111/acfi.13184

Yi (Ava) Wu, Yu Flora Kuang, Gladys Lee, Kerui Zhai

引用次数: 0

Abstract

Abstract We find that, compared to non‐connected analysts, analysts with professional connections to a coverage firm (i.e., connected analysts) are more likely to continue covering the firm after it issues a restatement. Furthermore, connected analysts are more likely to issue pessimistic earnings forecasts and to downgrade stock recommendations for the firm after its financial restatement. Our results also reveal the costs and benefits associated with connected analysts' pessimism – a reduced market reaction to the analysts' pessimistic research on the restating firm, and a positive effect on the market's perception of the quality of the analysts' research on non‐restating firms.

查看原文本刊更多论文

领带还管用吗?财务重述后分析师的行为

我们发现，与非关联分析师相比，与覆盖公司有专业联系的分析师(即关联分析师)更有可能在公司发布重述后继续覆盖该公司。此外，相关分析师更有可能发布悲观的盈利预测，并在该公司财务重述后下调其股票推荐评级。我们的研究结果还揭示了与关联分析师悲观情绪相关的成本和收益——降低了市场对分析师对重述公司的悲观研究的反应，并对市场对分析师对非重述公司的研究质量的看法产生了积极影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

Accounting and Finance BUSINESS, FINANCE-

CiteScore

5.10

自引率

7.70%

发文量

期刊介绍： Accounting & Finance enjoys an excellent reputation as an academic journal that publishes articles addressing significant research questions from a broad range of perspectives. The journal: • publishes significant contributions to the accounting, finance, business information systems and related disciplines • develops, tests, or advances accounting, finance and information systems theory, research and practice • publishes theoretical, empirical and experimental papers that significantly contribute to the disciplines of accounting and finance • publishes articles using a wide range of research methods including statistical analysis, analytical work, case studies, field research and historical analysis • applies economic, organizational and other theories to accounting and finance phenomena and publishes occasional special issues on themes such as on research methods in management accounting. Accounting & Finance is essential reading for academics, graduate students and all those interested in research in accounting and finance. The journal is also widely read by practitioners in accounting, corporate finance, investments, and merchant and investment banking.