Abstract

http://ssrn.com/abstract=930744
 
 

References (59)



 


 



Brokerage Industry Self-Regulation: The Case of Analysts' Background Disclosures


Lawrence D. Brown


Temple University - Department of Accounting

Artur Hugon


Arizona State University (ASU)

Hai Lu


University of Toronto - Rotman School of Management

November 10, 2009

AAA 2007 Financial Accounting & Reporting Section (FARS) Meeting Paper
Contemporary Accounting Research, Forthcoming

Abstract:     
We evaluate an industry disclosure initiative designed to inform investors, the practice of providing information regarding investment professionals’ backgrounds. Implicit in the motivation for this initiative is the presumed relevance of background information to investors seeking investment professionals’ guidance. We find that analysts with disclosure incidents forecast less accurately than a matched sample of analysts without such disclosures, and that the market views disclosed analysts’ earnings forecasts as less credible than those of the matched sample. Our evidence is consistent with disclosures signaling a persistent analyst characteristic. We conclude that analyst backgrounds are informative regarding both the accuracy and credibility of their earnings forecasts, and that investors who are uninformed as to an analyst’s background can benefit from these disclosures.

Number of Pages in PDF File: 53

Keywords: analysts, earnings forecasts, professionalism, self-regulation

JEL Classification: G24, G28, G14, M4

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Date posted: September 15, 2006 ; Last revised: April 1, 2014

Suggested Citation

Brown, Lawrence D. and Hugon, Artur and Lu, Hai, Brokerage Industry Self-Regulation: The Case of Analysts' Background Disclosures (November 10, 2009). AAA 2007 Financial Accounting & Reporting Section (FARS) Meeting Paper ; Contemporary Accounting Research, Forthcoming. Available at SSRN: http://ssrn.com/abstract=930744

Contact Information

Lawrence D. Brown
Temple University - Department of Accounting ( email )
Philadelphia, PA 19122
United States

Artur Hugon (Contact Author)
Arizona State University (ASU) ( email )
Farmer Building 440G PO Box 872011
Tempe, AZ 85287
United States
Hai Lu
University of Toronto - Rotman School of Management ( email )
105 St. George Street
Toronto, Ontario M5S 3E6
Canada
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