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Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

We employ a novel machine learning technique to classify analysts' forecast revisions into five types based on how the revision weighs publicly available signals. We label these forecast types as quant, sundry, contrarian, herder, and independent forecasts. Our tests reveal that a greater diversity of forecast types within the consensus is associated with increased consensus dispersion and improved consensus accuracy. Additionally, consensus diversity is associated with an improved information environment for firms, as reflected in reduced earnings announcement information asymmetry and volatility, higher earnings response coefficients, and faster price formation. Our study sheds light on how analysts revise their forecasts and documents capital market benefits associated with different analyst forecasting approaches. [ABSTRACT FROM AUTHOR]

We propose a method to identify the informativeness of a future scheduled announcement at the daily level, exploiting the discontinuity it creates in the term structure of option volatility. We implement the strategy in a panel data model to estimate the relation between prior signals and the future announcement. This method allows us to separate substitutes from complements, it can isolate multiple signals within the same quarter, and it can condition on the timing and signal characteristics. We find that analyst forecasts substitute earnings announcement information and that recommendations do not provide extra information on top of forecasts. Moreover, our evidence suggests that insiders sell to avoid uncertainty when the announcement is far away but pull forward earnings information when they trade one month before. This paper was accepted by Eric So, accounting. Funding: This publication is part of the project "Eliciting the properties of private signals" (with project number VI.Veni.201E.029 of the research program VENI SGW, which is (partly) financed by the Dutch Research Council (NWO). Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mnsc.2023.4970. [ABSTRACT FROM AUTHOR]

We investigate the role of financial analysts in product quality failures. Relying on information about product recalls, we first show that analyst coverage on average reduces product quality, particularly when managers face greater short-term pressure from institutional investors. However, after identifying a subgroup of analysts who raise questions on product-related issues in earnings conference calls, we find that coverage by these "product analysts" enhances rather than compromises product quality. Firms with greater product analyst coverage are also more likely to retire low-quality products. Additional analysis demonstrates that product analysts help safeguard product quality by further probing into product-related matters and issuing more timely recommendation downgrades after firms announce product deficiencies. [ABSTRACT FROM AUTHOR]

Previous research provides conflicting results regarding how R&D expenditures impact market value. Given that financial analysts are the primary intermediaries between companies and investors, our study focused on the impact of R&D-related uncertainty, growth, and information asymmetry associated on analysts' earnings forecasts. Based on 19,834 firm-year observations in the European market between 2005 and 2020, our results show that R&D activities lead to higher absolute forecast error and negative forecast error, indicating higher forecast inaccuracy with an optimistic bias. Additionally, these investments contribute to higher forecast dispersion, indicating disagreement among financial analysts. The comparison between 17 industries revealed that these effects are more pronounced in R&D-intensive industries than in non-R&D industries, uncovering the varied relationship between R&D investments and analyst forecasts across sectors. [ABSTRACT FROM AUTHOR]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The aims of this paper are to present the methodology, derived mathematical expressions for determining the individual factor influences and the adaptation for the conditions of dynamic deterministic factor analysis and the results of the application of the developed new method for deterministic factor analysis, called the averaged chain substitution method. After formulating the concept of the considered approach, all mathematical expressions used to create models containing up to four factor variables are presented and summarized. The scientific novelty of the study is in the obtained new equations for determining the individual factor influences by the method of averaged chain substitution and the method of analogy for five-factor additive or difference-multiplicative and for five-factor additive or difference-multifactor models with an additive or different part in the numerator of the factor model. The presented mathematical expressions accurately and unambiguously quantify the impact of individual factor influences for all types of factor models and thus significantly expand the applicability of the averaged chain substitution method in the theory and practice of financial-economic analysis. The proposed formalization and algorithmization of the evaluation process makes the method easy to apply by all economic and financial analysts for the purposes of deterministic factor analysis. The methodology was applied to perform a dynamic deterministic factor analysis of the total liquidity of Monbat AD and ELHIM-ISKRA AD for the period 2017–2021, based on the consolidated annual financial statements of the companies, available on the website of the Bulgarian Stock Exchange. [ABSTRACT FROM AUTHOR]

In response to growing environmental challenges, there is an urgent need to understand how corporations can leverage new technologies to boost sustainability and eco‐innovation. This study addresses this need by investigating Artificial Intelligence adoption (AIA) influence on green innovation (greenovation) performance among Chinese firms as China's expanding digital economy and severe ecological pressures make it unique study context. Specifically, panel data on 8722 firm‐year observations from Chinese listed firms from 2008 to 2017 is analyzed to test the relationship. The main findings show that higher AIA is associated with increased greenovation, measured through green patents. This positive effect is more pronounced among privately‐owned enterprises versus state‐owned enterprises. Additionally, financial analysts are found to strengthen the AI‐greennovation link through information dissemination and scrutiny. Importantly, the study findings are robust and validated through a battery of tests, including change regression, instrumental variable methods, propensity score match (PSM), and sysGMM. Overall, this study provides novel empirical evidence that AI holds promise as an enabler of corporate eco‐innovation. The findings have crucial implications for research and practice regarding leveraging digital technologies for sustainability, especially in emerging economies like China that is undergoing rapid technological change. [ABSTRACT FROM AUTHOR]

Consistent with the monitoring function played by financial analysts, we find that greater analyst coverage leads to the same extent of improvement in the quantity and quality of environmental information disclosed by the firm. This result is remarkably robust after conducting a difference‐in‐differences analysis that exploits brokerage closures and mergers as an exogenous decrease in analyst coverage, as well as using an instrumental variable approach. The positive influence of analyst coverage on corporate environmental disclosure is particularly evident for firms that cause high environmental damage, firms with low information asymmetry and those followed by analysts with superior experience, accuracy and reputation. Taken together, our empirical findings provide new insights into the bright side effect of analyst coverage on corporate environmental‐related activities. [ABSTRACT FROM AUTHOR]

The regional industry network (RIN) is a type of financial network derived from industry networks that possess the capability to describe the connections between specific industries within a particular region. For most investors and financial analysts lacking extensive experience, the decision-support information provided by industry networks may be too vague. Conversely, RINs express more detailed and specific industry connections both within and outside the region. As RIN analysis is domain-specific and current financial network analysis tools are designed for generalized analytical tasks and cannot be directly applied to RINs, new visual analysis approaches are needed to enhance information exploration efficiency. In this study, we collaborated with domain experts and proposed V4RIN, an interactive visualization analysis system that integrates predefined domain knowledge and data processing methods to support users in uploading custom data. Through multiple views in the system panel, users can comprehensively explore the structure, geographical distribution, and spatiotemporal variations of the RIN. Two case studies were conducted and a set of expert interviews with five domain experts to validate the usability and reliability of our system. [ABSTRACT FROM AUTHOR]

The gender pay gap among firms' upper echelons is a prominent issue not only because it concerns equality in the workplace, but also because it may impact firms' culture and performance. Responding to calls to better understand how stakeholder expectations and pressures might influence the gender pay gap, this study examines the role of a key stakeholder group, i.e., financial analysts, in curbing the executive gender pay gap. Drawing on the stakeholder and attention-based views of the firm, we contend that analyst coverage may counter the pay gap by: (a) raising other stakeholders' attention on discriminatory pay-setting practices; and (b) reducing information asymmetries in the executive labor market. Both firm- and individual-level econometric analyses on a sample of 38,211 executives working in 3,473 firms support our hypothesis: an increase in analyst firm coverage helps to reduce the gender pay gap among the top executives of S&P 1500 firms between 1992 and 2016. Post-hoc analyses—that use the closure of brokerage houses as an exogeneous shock—lend further support to our claims. Our results advance the literature at the nexus of the stakeholder theory and attention-based view of the firm by unveiling the role of intermediaries in channeling the limited stakeholder attention to certain firms, contributing to the development of a stakeholder-based theory of executive pay. [ABSTRACT FROM AUTHOR]

Several prior studies indicate that financial analysts exhibit systematic underreaction to information; others illustrate systematic overreaction. We assume that cognitive biases influence analysts' behavior and that these misreactions are not systematic, but they depend on the nature of news. As cognitive biases intensify in situations of high ambiguity, we distinguish between bad and good news and investigate the impact of intangible assets—synonymous with high uncertainty and risk—on financial analysts' reactions. We explore the effect of information conveyed by prior-year earnings announcements on the current-year forecast error. Our findings in the Saudi financial market reveal a tendency for overreaction to positive prior-year earnings change (good performance) and positive prior-year forecast errors (good surprise). Conversely, there is an underreaction to the negative prior-year earnings change (bad performance) and negative prior-year forecast error (bad surprise). Notably, analysts exhibit systematic optimism rather than systematic underreaction or overreaction. The results also highlight that the simultaneous phenomena of overreaction and underreaction is more pronounced in high intangible asset firms compared to low intangible asset firms. [ABSTRACT FROM AUTHOR]

Company Investors and financial professionals mostly rely on quarterly reports to help them decide the ways to invest in stocks and assess the company's current performance. Quarterly company reports offer an abstracted perspective of the company's overall past performance, as well as its present situation and the market value of its market share. Financial text streams in quarterly report are unstructured naturally, but they represent cooperative expressions that are of important in any financial decision for stake holder. It will be both daunting and necessary to procedure intelligence of unstructured textual data. In this study, we address important queries related with the explosion of interest in a method to extract useful information from unstructured data and the way to work out if such insight provides any hints regarding the trends of financial markets. There is a lack of availability in the labeled dataset for financial sentiment analysis applications. The pre-trained language model employs very little labeled parameters that is used for a variety of domain specific corpora including financial sentiment analysis. In this paper, FinBERT, a model built on the BERT framework, to address linguistics challenges in the financial domain. The proposed work uses twelve transformer layers and twelve attention layers with several million parameters. The design of encoder and decoder comprises of several attention layers along with RNN. This arrangement aids to recognize instances processing the strongest relation between the words within a particular sentence. The experimentation results shows that the presented method surpass the state-of-the-art methods for financial datasets. The results are also compared with other existing models using the same financial dataset. It is observed that the FinBERT attains an accuracy of 84.77% on quarterly reports despite using a lesser training set. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to verify whether the management of taxable income through aggressive tax practices negatively impacts the accuracy of market analysts' forecasts. Originality/value: The central contribution of this study is to relate tax aggressiveness with more significant errors in analysts' forecasts. Thus, the relevance of this paper is in showing that this practice can lead to a greater perception of companies' risks and more significant informational asymmetry, in addition to influencing stock prices and resulting in lower analyst accuracy. Design/methodology/approach: This research paper was developed from regression models with panel data with random effects, also using estimators based on instrumental variables with the application of Jensen's test to verify the validity of the generalized method of moments (GMM) estimation. The data were treated with the winsorization technique at the 1% level. Findings: A sample of companies listed on the B3 between 2010 and 2017 (with a total of 2,805 valid observations) showed that companies with higher tax aggressiveness are subject to a higher analyst forecast error. Thus, it is inferred that, for more aggressive companies, the degree of analyst predictability decreases. With this drop in the quality of analysts' forecasts, the users of their forecasts and reports are more vulnerable to informational asymmetry. [ABSTRACT FROM AUTHOR]

This study investigates the valuation usefulness of fair values and related information disclosure in China and examines how regional‐level market institutions influence the valuation usefulness of fair value information. Based on a sample of Chinese listed companies during 2007 to 2016, the empirical results show a negative association between overall fair values and analyst forecast accuracy. Further analyses suggest that the negative association is likely driven by biases and/or errors in fair value estimates. Using a difference‐in‐difference research design, the study also documents that the implementation of ASBE 39 in 2014 has improved the valuation usefulness of fair values. There is evidence that different aspects of market institutions—including the extent of government intervention in the market and the legal environment—influence analysts' use of fair value information. This study contributes to the literature by providing new and different evidence on the usefulness of fair values to financial analysts outside developed countries. Moreover, by taking advantage of the uneven institutional development across China, the study shows that different aspects of market institutions influence the valuation usefulness of fair value information. [ABSTRACT FROM AUTHOR]

Prior studies that examine how new expertise becomes integrated into organizations have shown that different occupations work to legitimate their new expertise to develop credibility and deference from other organizational groups. In this study, we similarly examine the work that an expert occupation did to legitimate their expertise; however, in this case, they were legitimating practices that they actually considered illegitimate. We report findings from our 20-month ethnography of data analysts at a financial technology company to explain this process. We show that the company had structured data analytics in ways similar to Bechky's idea of a captive occupation: They were dependent on their collaborators' cooperation to demonstrate the value of data analytics and accomplish their work. The data analysts constantly encountered or were asked to provide what they deemed to be illegitimate data analysis practices such as hacking, peeking, and poor experimental design. In response, they sometimes resisted but more often reconciled themselves to the requests. Notably, they also explicitly lowered their stated standards and then worked to legitimate those now illegitimate versions of their expert practices through standardization, technology platforms, and evangelizing. Our findings articulate the relationship between captive occupations and conditions wherein experts work to legitimate what they consider illegitimate practices. [ABSTRACT FROM AUTHOR]

We examined the relationship between water risk and the information environment of financial analysts using data from Chinese listed companies from 2010 to 2020. We theorized that corporate water risk deteriorates analysts' information environment by affecting operational and financial uncertainty and corporate legitimacy. Specifically, we found that corporate water risk is associated with higher analyst forecast errors and analyst forecast dispersion and lower analyst following. This relationship weakens with corporate water information disclosure and strengthens with the environmental attention of local governments. Furthermore, we explored the impact of corporate water risk on financial risk and future financial performance and discovered that water risk increases corporate financial risk and reduces future earnings. This suggests that corporate nonfinancial risk may also include subtle financial risk, and current water risk has a certain predictive effect on future earnings, which is an interesting finding. Our results are robust to a range of tests, including instrumental variable, generalized method of moments estimates, propensity score matching, and alternative measures of analysts' information environment. Generally, our study provides insights into the complementary role of nonfinancial risks represented by water risk in understanding financial risk and has important implications for academia and practitioners in understanding the economic consequences of corporate water risk. [ABSTRACT FROM AUTHOR]

We examine how asymmetric information in financial markets affects voluntary research and development (R&D) disclosure, considering scientific publications as a disclosure channel. Difference-in-differences regressions around brokerage house mergers and closures, which increase information asymmetry through reductions in analyst coverage, indicate a quick and sustained increase in scientific publications from treated firms relative to the number of publications from control firms. The treatment effects are concentrated among firms with higher information asymmetry and lower investor demand, firms with greater financial constraints, and firms with lower proprietary costs. We do not find evidence of changes in financial disclosure, nor do we find changes in patenting. Results from ordinary least squares regressions show that scientific publications by firms are positively associated with investor attention toward those firms. We complement these results with qualitative evidence from conference calls. Our results highlight the limitations and trade-offs R&D firms face in their financial market disclosure policies. This paper was accepted by Brian Bushee, accounting. Funding: This work was supported by the Danish Independent Research Fund [Grant 0133-00119B] and the Spanish Ministry of Science, Innovation and Universities [Grant PGC2018-094418-B-I00]. Supplemental Material: The online appendix and data are available at https://doi.org/10.1287/mnsc.2023.4721. [ABSTRACT FROM AUTHOR]

Cash flow forecasting has significantly increased since 2000 due to more attention paid by investors and financial analysts than before. If cash flows can be predicted appropriately, a significant part of the informational needs associated with cash flows will be provided. In this regard, this study aims to examine the impact of firm characteristics on predictable future cash flows from operating activities by employing present operating cash flow and profitability. Eight hypotheses were developed, and the information was analyzed for 127 firms listed on the Tehran Stock Exchange between 2011 and 2020. The regression model was tested with a fixed effect model using panel data. The study's findings showed that firm characteristics like size, level of competition, and level of supervision positively impact the predicting power of present operating cash flow and profitability in anticipating future operating cash flow. By contrast, the outcomes disclose that characteristics such as the company's life will not significantly affect the predicted strength of present operating cash flow and present profitability to forecast future cash flow from operating activities. [ABSTRACT FROM AUTHOR]

This paper empirically examines the relationship between forward-looking environmental and social information in sustainability reports (FLSI) and financial analysts' forecast accuracy. To provide contextual insights, we conduct semistructured interviews with financial analysts. We find that FLSI quantity, measured by FLSI words and scope, and FLSI quality, measured by the precision, horizon, and direction of the environmental or social forecast, are associated with greater earnings forecast accuracy for short-horizon forecasts. Specifically, the precision and direction of FLSI affect analysts' short- and midhorizon forecasts. Our results hold only for environmental FLSI and FLSI in externally assured sustainability reports. However, the results indicate that the provision of economic information in sustainability reports does not affect analyst forecasts. Collectively, our findings carry far-reaching implications for practitioners and—in particular—regulators around the world by shedding light on the potential costs and benefits of the new European Corporate Sustainability Reporting Directive (CSRD). Data Availability: Data are available from the public sources cited in the text. JEL Classifications: M40; M41. [ABSTRACT FROM AUTHOR]

Asset pricing models are widely applied for explaining variations in stock returns. The applicability of these models is tested on different markets for assessing different stock price anomalies. In this paper, Fama and French three factor model and Carhart Model were applied on the KSE-100 Index, over the period of 2004 to 2019. Following the FF 3 factor methodology, we create a relatively large number of portfolios based on size, value and momentum, whereas the existence of momentum factor was checked through Carhart model. The results indicates that, out of 25 portfolios, 15 were able to explain the variations in stock returns, which shows 60% efficiency of the Carhart model compared to the FF 3 factor model with 56% efficiency whereby only 14 portfolios were able to explain the variations in the stock returns. The momentum factor is thus evident from the results, whereas the value factor is found to be redundant. Our findings suggest that while projecting stock prices, financial experts and analysts should not ignore the momentum factor as by doing so there may be chances of underpricing or over-pricing of stock returns. [ABSTRACT FROM AUTHOR]

The purpose of this study is to explore the factors affecting the selection of multibagger stocks in the securities market. Further, the study aims to develop a model using interpretive structural modeling (ISM). Thereafter, the driving and dependence power of factors was found using matriced impact croises multiplication appliquee a un classement (MICMAC). A group of financial analysts and academic experts having experience in dealing in the Indian securities market were consulted and interpretive structural modelling (ISM) is adopted to develop the contextual relationship among various factors for each dimension of multibagger stocks selection. Further, to identify the driving and the dependence power of factors, the results of the ISM are used as an input to MICMAC analysis. The results of the study indicate the large potential market (C11), visionary leader (C13), unique business model (C6), understanding of the sector (C1), and promoter and management capability (C2) are the dominant factors. MICMAC analysis indicates that driving, dependent and linkage factors are 4, 5, and 4 respectively. The factors obtained for ISM model development and MICMAC analysis are based on the experts' opinions. As it is a subjective judgment, there are chances of biasness on basis of personal opinions. A questionnaire survey can be conducted to gather viewpoints on these factors from more financial experts and portfolio consultants. The study has been executed in discussion with financial analysts and academic experts having experience in dealing in the securities market. Hence, derived results have practical validity. The securities market is quite volatile in nature and the right choice of multibaggers may prove to be wealth creators for the general public. Investors may look for the derived factors for investing their savings into profitable channels by picking up those stocks which may prove to be multibaggers in near future. The development of a model for the identification of factors affecting the choice of multibaggers in the securities market is the original contribution of the authors. [ABSTRACT FROM AUTHOR]

Objective: Most economic and financial theories, according to the "rational economic man" theory, assume that when investing, investors consider all aspects and make completely rational decisions. However, the concept of a rational person remains ambiguous since human decisions deviate from the standard assumptions of economics. Individual stocks are recommended for purchase or sale by financial experts and stock market analysts and are followed by a large number of individual and institutional investors. Analysts provide information of varying quality to various groups of investors, as a result of the differences in these groups' characteristics and the information available to them, each group behaves differently. Since each of these groups may uniquely rely on the market, understanding the basis of the collective behavior of different investor groups can lead to a better understanding of price fluctuations. This study investigates how investors in the Iranian province of Fars react to the recommendations of fundamental analysts when selling shares.Methods: In this study, the laboratory-field method was employed to design and execute two experiments involving a total of 315 investors. The participants were divided into control and experimental groups, and the study focused on investigating the presence or absence of the tendency effect in the Iranian stock market within the control group. The impact of analysts' reasoning and recommendations on investor decisions and behavior was evaluated in the experimental group.Results: The first experiment showed that the Iranian stock market is influenced by a tendency effect. The findings of the second experiment revealed that under good market conditions, investors kept winning stocks with both strong and weak analyst recommendations. Under difficult market conditions, investors were less likely to sell losing stocks (with negative returns) with excellent expert recommendations but more eager to sell with weak analyst recommendations.Conclusion: The purpose of this study was to examine how the recommendations of fundamental analysts impact the decision-making of stock exchange investors in the Fars province of Iran regarding the sale of stocks. Accordingly, 315 Tehran Stock Exchange investors from various cities in Fars province were divided into two experimental groups (each with 130 participants) and a control group (including 55 participants). The research findings indicated that given favorable market circumstances and the lucrative share position, with both the analyst's strong and weak recommendation (based on keeping the share), people resist selling and begin to keep the share. Furthermore, despite the analyst's strong recommendation, people stop selling and risk keeping the shares due to unfavorable market conditions and the losing stock's position (with additional information to support the recommendation to sell the shares). Unlike earlier studies, this study investigated the impact of fundamental analysts' recommendations on investors' decisions to sell shares depending on probability.

In this study, we explore the inter-dynamics among holding periods, return multiples, fund types, and exit routes of different VC and PE investments in the emerging economy context of India. We employ data spanning from January 2004 to March 2021, and our results indicate that there is a negative association between the holding period and return. The results also indicate that the average holding periods for India-dedicated and foreign funds are not significantly different. Furthermore, the results show that India-dedicated funds outperform foreign funds significantly in generating returns. Finally, the findings suggest that all exit routes can potentially yield similar results, contrary to the prevailing belief that certain exit routes guarantee superior returns. These findings provide useful insights for a spectrum of stakeholders, including entrepreneurs, practitioners, investors, financial analysts, and policymakers. [ABSTRACT FROM AUTHOR]

We analyze the effect of chief executive officer (CEO) narcissism on environmental, social, and governance (ESG) reporting. The study relies partly on hand‐collected, visual data and covers 57 German DAX 40 and MDAX companies from 2016 to 2020 (266 company‐year observations, Bloomberg database). Looking into the sub‐scores of ESG, CEO narcissism has a negative and linear relationship with environment and governance reporting but there is no significant relationship between narcissism and social reporting. Regression analyses further suggest a U‐shaped (quadratic) relation between CEO narcissism and ESG reporting: while low to moderate degrees of narcissism affect overall ESG reporting negatively, as CEO levels of narcissism increase so does the level of reporting. Moreover, further analysis has shown that the quantity of reporting is additionally positively related to ESG performance. The study applies and validates a relatively new but easily applicable measure of narcissism and extends narcissism research in the area of curvilinear relationships. We offer several further implications for human resource managers, regulators, auditors, and (non‐)financial analysts. [ABSTRACT FROM AUTHOR]

This study examines how information spillovers from equity to debt markets ("equity spillovers") affect sell-side debt analysts' activities and the informativeness of their reports. To explore this relation, I compare debt analyst reports for firms without equity spillovers (private firms) to firms with equity spillovers (public firms). I find that, absent equity spillovers, analysts rely more on mandatory SEC filings to fill the information gap for private firms. This additional effort, however, reduces debt analysts' coverage of private firms overall. Conditional on coverage, the content of debt analyst reports is remarkably similar across private and public firms. Finally, I find that debt analyst reports are more informative for private firms than for public firms. Collectively, my findings shed light on the externalities created by equity spillovers and how debt market intermediaries contribute to the price discovery process. [ABSTRACT FROM AUTHOR]

Knowledge of the initiatives that companies are promoting to curb climate change and the impacts resulting from these activities require the disclosure of relevant information that can be used by stakeholders in their decision‐making processes. The objective of this work is to complement previous studies by analysing the effect and type of relationship that exists between internal and market corporate governance mechanisms. We theoretically argue that business transparency related to climate change is explained both by climate governance and by the coverage of the company by financial analysts and that there may be both a complementary and substitutive relationship between the two mechanisms. The results obtained on a global climate governance score show the existence of a substitutive relationship, but the individualised consideration of the components of this score suggests a potential divergent relationship. [ABSTRACT FROM AUTHOR]

Using a new measure of shareholder inattention constructed from exogenous industry shocks to institutional investor portfolios, we find that firms with distracted shareholders are associated with a higher cost of debt. This effect is stronger for firms with more powerful CEOs, firms with higher information asymmetry, and those operating in less competitive product markets. Further testing suggests that the inattention-cost of debt relation is driven primarily by dual holders directly observing shareholder distraction. Our results are robust to controlling for inattention at the retail investor level and to other external monitors, including credit rating agencies, financial analysts, and Big 4 auditors. Overall, our evidence suggests that institutional shareholder inattention has an incrementally negative effect on bond pricing. This paper was accepted by Brian Bushee, accounting. Supplemental Material: The data files and online appendix are available at https://doi.org/10.1287/mnsc.2022.4593. [ABSTRACT FROM AUTHOR]

SYNOPSIS: In this study, I examine whether top management team (TMT) between-member and within-member functional diversity affect management earnings forecast accuracy. Between-member functional diversity refers to the heterogeneity of functional experts on a TMT and within-member functional diversity refers to the aggregate functional breadth of TMT members. I find that both types of functional diversity are positively associated with management forecast accuracy. Further cross-sectional analyses show that these positive associations are significant only when firms face greater information uncertainty, when TMTs are more decentralized, and when TMT members have longer joint team tenure. These findings are consistent with the information-processing perspective that TMT functional diversity can facilitate information processing and sharing and thus improve management forecast accuracy. This study contributes to the literature by shedding light on how TMT members with various functional backgrounds work together in shaping financial disclosure quality. Data Availability:Data are available from the public sources cited in the text. [ABSTRACT FROM AUTHOR]

SYNOPSIS: Using a sample of S&P 500 companies, this study constructs a measure of CEO narcissism and examines whether and how it impacts the accuracy and dispersion of analysts' forecasts. Empirical evidence suggests that firms with narcissistic CEOs have higher accuracy and lower dispersion of such forecasts. In investigating the mechanism through which CEO narcissism impacts these properties, we find that firms with narcissistic CEOs are more likely to issue management earnings guidance, albeit less accurate, which results in significant differences in accuracy and dispersion of analysts' forecasts. This study concludes that through more management voluntary disclosure, CEO narcissism has a positive impact on the accuracy and a negative impact on the dispersion of financial analysts' forecasts. Although several studies have explored the effect of CEO narcissism on corporate financial reporting, this is the first study to expand such inquiry into the sector of financial analysts. JEL Classifications: G17; M12; M41. [ABSTRACT FROM AUTHOR]

As visible and knowledgeable experts who constantly collect, analyze and disseminate information about the future prospects of publicly listed firms, financial analysts fulfill an important information brokerage and monitoring function for investors. By providing investment advice, financial analysts also influence the demand for a firm’s stock and thus its price. Executives pay close attention to financial analysts’ earnings forecasts and recommendations, so much so that they are frequently criticized for excessive focus on their forecasts at the expense of the long-term interests of the firm. But while research on analysts in strategic management is steadily growing, we lack a coherent understanding of the extent and nature of analysts’ diverse influences on executives’ and investors’ decision-making, and the context in which analysts operate. This is largely due to the fragmentation of the literature and the absence of prior reviews or meta-analyses of the topic. By organizing, synthesizing and analyzing extant research efforts on analysts in the various domains of strategic management research, we aim to advance our knowledge on the influence of analysts on firms and investors. Further, we hope that our analyses and recommendations help further increase research coverage on this important organizational stakeholder.

Mobilizing Foucault's genealogy, this article investigates how an "ethics event"—the involvement by some sell-side financial analysts in the United States and United Kingdom across the past two decades in corporate governance—emerged. It is found that the complex relations formed between specific historical precedents, normative discourses, and fields of power rendered certain issues in financial markets morally problematic and constructed analysts' corporate governance work as a potential solution. Contributing to research in finance ethics, this article develops a novel perspective to conceptualize the rise of ethically relevant practices in financial markets, focusing on how ethical problems and their solutions are outcomes of discursive construction and power relations. This article also revises our understanding of the boundary between technical norms and moral norms in financial markets. When ethical crises occur, it is argued, transforming technical practices and revising the technical norms adopted by financial professionals has the potential to tackle ethical concerns. [ABSTRACT FROM AUTHOR]

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Contemporary Accounting Research is the property of Canadian Academic Accounting Association and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)