검색 상세

Does the Analyst Coverage at the Industry Level Impact Earnings Management?

초록/요약

This paper examines whether sell-side analyst coverage at the industry level impacts earnings management behavior. My findings suggest that 1) when firms are within an industry with higher level of analyst coverage, they manage earnings upward more but downward less, and that 2) when firms receive less analyst coverage at the firm level, the effect of analyst coverage at the industry level on upward earnings management is stronger. This study extends previous research that shows higher level of analyst coverage at the firm level reduces earnings management (Yu 2008) by providing evidence that contrast to the effect of firm-level analyst coverage on individual firms' earnings manipulation, pressure effect of analyst coverage at the industry level on earnings management could be stronger than monitoring effect, leading to more earnings manipulation.

more