We examine whether the extent to which analysts match their forecast conservatism with companies’ accounting conservatism affects their forecast accuracy and market impacts. We introduce a novel measure of the match or alignment between an analyst’s asymmetric timeliness in her earnings forecast revisions and reported earnings’ asymmetric recognition timeliness, and find that analysts who better match their forecast conservatism with companies’ accounting conservatism produce more accurate forecasts and have a greater influence on the market. The results suggest that analysts can benefit from correctly understanding accounting conservatism of the company they cover and that their ability to understand companies’ accounting conservatism serves as an important source of analyst expertise.
Keywords: Analysts, Conservatism, Asymmetric timeliness, Earnings forecasts.
학회소식
[2013년 제 1차] Does Analysts’ Understanding of Accounting Conserva
작성자 : 관리자
조회수 : 998
게시일 :
2013-03-04
