Insider Ownership and Analyst Forecast Properties
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
| Original language | English |
|---|---|
| Pages (from-to) | 125-150 |
| Journal / Publication | Journal of Accounting, Auditing and Finance |
| Volume | 34 |
| Issue number | 1 |
| Online published | 1 Mar 2017 |
| Publication status | Published - Jan 2019 |
Link(s)
Abstract
In this article, we investigate the effect of insider ownership on analyst forecast properties and find a significant nonlinear relationship between the two. Specifically, in the low to medium range, a rise in insider ownership improves analyst forecast properties (making them more accurate and less dispersed), but a further rise in insider ownership beyond moderate levels leads to deteriorating forecasts. We also find that this nonlinear relationship is attenuated for firms in countries with better investor protection. We interpret our findings as evidence that the role of insider ownership as an interest alignment or entrenchment mechanism is diminished in these countries due to their stronger investor protection.
Research Area(s)
- analyst forecast properties, corporate governance, information environment, insider ownership, investor protection
Citation Format(s)
Insider Ownership and Analyst Forecast Properties. / Wang, Jacqueline Wenjie; YU, Wayne W.
In: Journal of Accounting, Auditing and Finance, Vol. 34, No. 1, 01.2019, p. 125-150.
In: Journal of Accounting, Auditing and Finance, Vol. 34, No. 1, 01.2019, p. 125-150.
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review
