The Effect of Issuing Biased Earnings Forecasts on Analysts' Access to Management and Survival

By Bin Ke, Yong Yu. 2006

389 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/91620021d42a8b30907305f80a8b7a423ffbcb3c

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Mohan Venkatachalam
2. Tao Chen
3. Chen Lin
4. Andrew C. Call
5. William J. Mayew
6. Y. H. Tong
7. Nathan Y. Sharp
8. Shuping Chen

In Finance

1. Mohan Venkatachalam
2. Andrew C. Call
3. William J. Mayew
4. Nathan Y. Sharp
5. Y. H. Tong
6. Shuping Chen
7. Chen Lin
8. Jarrad Harford

In Strategy and Management

1. Nathan Y. Sharp
2. Jarrad Harford
3. Shuping Chen
4. Tao Chen
5. William J. Mayew
6. Y. H. Tong
7. Mohan Venkatachalam
8. Chen Lin

Citations in the corpus

• The Effect of China's Weak Institutional Environment on the Quality of Big 4 Audits (2015, neutral): “As we are interested in partner i's experience relative to other partners in the same audit firm, we follow Ke and Yu (2006) by constructing a relative measure as follows: REL YEARS ijt ¼ 100 À ðÀ1 þ RANK YEARS ijt Þ ðÀ1 þ N jt Þ 3 100 where RANK_YEARS ijt is a ranked measure of partner i's…”
• Are analysts’ earnings forecasts more accurate when accompanied by cash flow forecasts? (2009, methodology): “We also include the average bias of the analyst’s earnings forecasts (BIAS) as Ke and Yu (2006) find that analysts who ‘‘walk down’’ their earnings forecasts are less likely to be fired.”
• The Market Reward for Achieving Analyst Earnings Expectations: Does Managing Expectations or Earnings Matter? (2011, neutral): “Also, downward forecast revisions may be due to analyst forecast optimism early in the period (Schipper 1991, Cowen et al. 2006, Ke and Yu 2006) or analysts’ independent assessments of economy-wide and firm-specific bad news arising during the year, rather than managerial intervention to guide…”
• Fifty-Year Overview of Judgment and Decision-Making Research in Accounting (2011, neutral): “Several archival studies (e.g. Ke and Yu, 2006) had reported that analysts’ forecasts tended to be optimistic at the beginning of the financial year, but became pessimistic as the earnings announcement date approached.”
• Analyst Career Concerns, Effort Allocation, and Firms’ Information Environment (2018, neutral): “PMAFEi,j,t = AFEi,j,t − MAFEj,t MAFEj,t PMAFEi,j,t is an analyst’s forecast accuracy relative to all other analysts covering the same firm during the same time period and thus filters out differences across companies, year and industry (Ke and Yu, 2006).”
• Do Analysts Matter for Governance? Evidence from Natural Experiments (2015, background): “Nevertheless, much of the academic research in this area centers on the conflicts of interest between analysts and sell-side or buy-side clients, which results in an optimistic bias in earnings forecasts (e.g. Das et al., 1998; Gu and Wu, 2003; O’Brien et al., 2005; Ke and Yu, 2006; Mola and Guidoli”
• Before an Analyst Becomes an Analyst: Does Industry Experience Matter? (2015, neutral): “PMAFE is the relative forecast accuracy for all analysts covering the same firm and thus controls for differences across companies, time and industry (Ke and Yu, 2006).”