Empirical Research of the Relevance among Analysts Coverage, Institutional Environment and Earnings Management

Bo Xu (), Kai Li and Wei Zhang
Additional contact information
Bo Xu: Northeastern University
Kai Li: Northeastern University
Wei Zhang: Northeastern University

Chapter Chapter 10 in The 19th International Conference on Industrial Engineering and Engineering Management, 2013, pp 95-102 from Springer

Abstract: Abstract The paper uses discretionary accruals as the main substitute variable for earnings management, and analyzes the relationship between earnings management and analyst coverage and also concerns how the institutional environment impacts this relationship by 2,514 listed companies in Shanghai and Shenzhen Stoke Exchange in China during the Period of year 2004–2005. We find that a higher level of analysts coverage is related to less earnings management. We also find that analysts coverage is more negatively associated with earnings management for companies in weak institutional environment regions than for companies in strong institutional environment regions. The result suggests that analysts coverage has a substitute role to investor protection. Analysts coverage can play effective external governance role.

Keywords: Analysts coverage; Earnings management; Empirical research; Institutional environment (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:sprchp:978-3-642-38442-4_10

Ordering information: This item can be ordered from
http://www.springer.com/9783642384424

DOI: 10.1007/978-3-642-38442-4_10

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().