Analyst forecasts and stock price informativeness: Some international evidence on the role of audit quality

Chee Seng Cheong and Ralf Zurbruegg

Journal of Contemporary Accounting and Economics, 2016, vol. 12, issue 3, 257-273

Abstract: This paper examines the role that audit quality has on the type of information analysts impound into stock prices across a sample of developed and emerging markets. Specifically, we investigate the amount of firm-specific versus market-wide information analysts reveal by analyzing stock return synchronicity. We find that irrespective of the disclosure regime in place, less firm-level information reaches the market if the enforcement of the accounting standards is weak. Furthermore, we also show that information asymmetries are heightened between the firm and market when the audit regime is weak.

Keywords: Financial analysts; Information asymmetry; Audit quality; Emerging markets (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1815566916300492
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jocaae:v:12:y:2016:i:3:p:257-273

DOI: 10.1016/j.jcae.2016.09.002

Access Statistics for this article

Journal of Contemporary Accounting and Economics is currently edited by Agnes C.S. Cheng, P. Clarkson, F.A. Gul, Zoltan Matolcsy, Dan Simunic and Ben Srinidhi

More articles in Journal of Contemporary Accounting and Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().