Abstract

http://ssrn.com/abstract=2031992
 
 

References (76)



 


 



Analyst Coverage, Earnings Management and Financial Development: An International Study


Francois Degeorge


University of Lugano - Faculty of Economics; Swiss Finance Institute; European Corporate Governance Institute (ECGI)

Yuan Ding


China Europe International Business School (CEIBS)

Thomas Jeanjean


ESSEC Business School

Hervé Stolowy


HEC Paris - Accounting and Management Control Department

March 31, 2012

Journal of Accounting and Public Policy, Forthcoming

Abstract:     
Using data from 21 countries, this paper analyzes the relation among analyst coverage, earnings management and financial development in an international context. We document that the effectiveness of financial analysts as monitors increases with a country’s financial development (FD). We find that in high-FD countries, increased within-firm analyst coverage results in less earnings management. Such is not the case in low-FD countries. Our results are economically significant and robust to reverse causality checks. Our findings illustrate one mechanism through which financial development mitigates the cost of monitoring firms and curbs earnings management.

Number of Pages in PDF File: 50

Keywords: analyst coverage, earnings management, financial development, international comparison

JEL Classification: G3

Accepted Paper Series





Download This Paper

Date posted: March 31, 2012  

Suggested Citation

Degeorge, Francois and Ding, Yuan and Jeanjean, Thomas and Stolowy, Hervé, Analyst Coverage, Earnings Management and Financial Development: An International Study (March 31, 2012). Journal of Accounting and Public Policy, Forthcoming. Available at SSRN: http://ssrn.com/abstract=2031992

Contact Information

Francois Degeorge
University of Lugano - Faculty of Economics ( email )
via Giuseppe Buffi 13
CH-6904 Lugano
Switzerland
41 58 666 4634 (Phone)
41 58 666 4647 (Fax)
Swiss Finance Institute ( email )
c/o University of Geneve
40, Bd du Pont-d'Arve
1211 Geneva, CH-6900
Switzerland
HOME PAGE: http://www.istfin.eco.usi.ch/personal-info?id=705
European Corporate Governance Institute (ECGI)
c/o ECARES ULB CP 114
B-1050 Brussels
Belgium
Yuan Ding (Contact Author)
China Europe International Business School (CEIBS) ( email )
699, Hongfeng Road
Shanghai 201206, Shanghai 201206
China
Thomas Jeanjean
ESSEC Business School ( email )
Avenue Bernard Hirsch
B.P 50105
BP 105 Cergy Cedex, 95021
France
Hervé Stolowy
HEC Paris (Groupe HEC) - Accounting and Management Control Department ( email )
Jouy-en-Josas Cedex
France
+33 1 39 67 94 42 (Phone)
+33 1 39 67 70 86 (Fax)
HOME PAGE: http://www.hec.fr/stolowy

Feedback to SSRN


Paper statistics
Abstract Views: 964
Downloads: 232
Download Rank: 78,442
References:  76

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.406 seconds