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Full-Text Articles in Business
Industry Specialist Auditors, Outsider Directors, And Financial Analysts, Jerry Sun, Guoping Liu
Industry Specialist Auditors, Outsider Directors, And Financial Analysts, Jerry Sun, Guoping Liu
Odette School of Business Publications
This study investigates the relationships among industry specialist auditors, outside directors, and financial analysts. Specifically, we examine the effect of analyst coverage on the association between auditor industry specialization and outside directorship. We find that outside directors are less likely to hire industry specialist auditors for firms with high analyst coverage than for firms with low analyst coverage. Our findings suggest that analyst coverage moderates outside directors' demand for industry specialist auditors, that is, financial analysts may compete with industry specialist auditors to some extent in monitoring financial reporting process.
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]