Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1005078 | The International Journal of Accounting | 2011 | 17 Pages |
Abstract
This study examines whether analyst coverage affects the informativeness of income smoothing. I find that income smoothing enhances earnings informativeness more greatly for firms with high analyst coverage than for firms with low analyst coverage. The results suggest that income smoothing more efficiently communicates private information to investors when firms are followed by more analysts, consistent with the notion that analysts play an important information intermediary role in enhancing the informativeness of income smoothing.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Accounting
Authors
Jerry Sun,