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Distracted analysts and earnings management

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  • Le, Thanh Dat
  • Trinh, Tri

Abstract

This study examines whether firms covered by distracted analysts manage their earnings more intensively. We construct a firm-level measure of analyst distraction based on exogenous attention-grabbing events and find that analyst distraction is positively associated with earnings management. Our findings demonstrate that limited attention from analysts can negatively affect corporate financial reporting quality.

Suggested Citation

  • Le, Thanh Dat & Trinh, Tri, 2022. "Distracted analysts and earnings management," Finance Research Letters, Elsevier, vol. 49(C).
    • Handle: RePEc:eee:finlet:v:49:y:2022:i:c:s1544612322002756
    DOI: 10.1016/j.frl.2022.103038
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    References listed on IDEAS

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    9. Rex Wang Renjie & Patrick Verwijmeren, 2020. "Director attention and firm value," Financial Management, Financial Management Association International, vol. 49(2), pages 361-387, June.
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    Cited by:

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    3. Wen, Fenghua & Chen, Meng & Zhang, Yun & Miao, Xiao, 2023. "Oil price uncertainty and audit fees: Evidence from the energy industry," Energy Economics, Elsevier, vol. 125(C).

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    More about this item

    Keywords

    Earnings management; Sell-side analysts; Analyst distraction;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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