The Influence of Culture and Corporate Governance on the Characteristics that Distinguish Superior Analysts

Posted: 27 Oct 2003

See all articles by Michael B. Clement

Michael B. Clement

University of Texas at Austin - Department of Accounting

Lynn L. Rees

Utah State University - Huntsman School of Business

Edward P. Swanson

Texas A&M University - Mays Business School; Mays Business School, Texas A&M University

Abstract

This paper presents evidence for international markets about the characteristics of financial analysts who are able to provide more accurate earnings forecasts than their peers. The evidence is provided for ten individual countries and for country groups formed on the basis of a similar culture and corporate governance. While prior studies document that forecast accuracy in the U.S. is associated with several analyst characteristics, this topic has not been investigated in an international setting. We predict that differences in culture and corporate governance will cause the influence of some of the characteristics to differ by country. We find that relative forecast accuracy is influenced by years of experience, size of the analyst's employer, and frequency of forecast issuance in many of the countries and show that the significance of experience and employer is conditional on the type of culture and corporate governance of the country.

JEL Classification: M41, M47, G29, G34

Suggested Citation

Clement, Michael B. and Rees, Lynn L. and Swanson, Edward P., The Influence of Culture and Corporate Governance on the Characteristics that Distinguish Superior Analysts. Journal of Accounting, Auditing, and Finance, Winter 2004. Available at SSRN: https://ssrn.com/abstract=454320

Michael B. Clement

University of Texas at Austin - Department of Accounting ( email )

2110 Speedway, Stop B6400
Austin, TX 78712
United States
512-471-0332 (Phone)
512-471-3904 (Fax)

Lynn L. Rees (Contact Author)

Utah State University - Huntsman School of Business ( email )

3500 Old Main Hill
Logan, UT 84322-3500
United States
435-797-2272 (Phone)

Edward P. Swanson

Texas A&M University - Mays Business School ( email )

430 Wehner
College Station, TX 77843-4353
United States
979-845-8970 (Phone)
979-845-0028 (Fax)

Mays Business School, Texas A&M University ( email )

Wehner, MS 4353
College Station, TX 77843-4353
United States
979-845-5014 (Phone)
979-845-0028 (Fax)

Register to save articles to
your library

Register

Paper statistics

Abstract Views
2,525
PlumX Metrics