Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1004882 | The International Journal of Accounting | 2015 | 24 Pages |
Abstract
We investigate how the interaction between product market competition and firm-level corporate governance enhances the accuracy of analysts' forecasts and reduces the forecasts' deviation. Using a sample of Brazilian public firms covered by analysts, we find that competitive industries provide incentives to increase the flow of information, but not necessarily to enhance its quality. However, strong corporate governance enhances the financial reporting process and consequently the quality of analysts' forecasts. Our main evidence shows that the analysts who cover firms in more highly competitive industries with strong corporate governance are the most accurate.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
José Elias Feres de Almeida, Flávia Zóboli Dalmácio,