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Full-Text Articles in Business
Governance Role Of Analyst Coverage And Investor Protection, Jerry Sun
Governance Role Of Analyst Coverage And Investor Protection, Jerry Sun
Odette School of Business Publications
This study examines whether investor protection affects the governance role of analysts in constraining earnings management. Using a sample of 50,966 company-year observations from 24 countries for 1990-2007, the study finds that earnings management is more negatively associated with analyst coverage in weak investor protection countries than in strong investor protection countries. The findings suggest that analyst coverage plays a more important governance role in countries where investor protection is weak (i.e., a substitute relationship exists between analyst coverage and investor protection). [PUBLICATION ABSTRACT]
The Effect Of Earnings Quality And Country-Level Institutions On The Value Relevance Of Earnings, Steven F. Cahan, David Emanuel, Jerry Sun
The Effect Of Earnings Quality And Country-Level Institutions On The Value Relevance Of Earnings, Steven F. Cahan, David Emanuel, Jerry Sun
Odette School of Business Publications
This study investigates the relationship between the value relevance of earnings and earnings quality across countries. We find that there is a stronger relationship between earnings quality and the value relevance of earnings in countries with high investor protection than in countries with weak investor protection. We also find that the association between the value relevance of earnings and earnings quality is higher when a country's information environment is less opaque. Overall, our study documents evidence on international differences in the ability of stock prices to capture useful accounting information, consistent with the notion that the returns-earnings association reflects not …