Authors: Shin-Rong Shiah-Hou, Yen-Ju Huang
This paper investigates the relation between earnings management and analyst characteristics. Through the results, we can confirm what analysts can serve an external monitor. Our findings suggest that the firm covered by analysts who make lower forecast error or issue pessimistic forecasts more frequently and covered by more experienced analysts manage its earnings less.
Keywords: Analyst Characteristics, Earnings Management, Analyst Forecast Error, Analyst Forecast Biases, Analyst Experience