Brokerage industry self-regulation: The case of analysts’ background disclosures

We evaluate an industry disclosure initiative designed to inform investors, the practice of providing information regarding investment professionals’ backgrounds. Implicit in the motivation for this initiative is the presumed relevance of background information to investors seeking investment profes...

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Main Authors: BROWN, Lawrence, HUGON, Artur, LU, Hai
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2009
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Online Access:https://ink.library.smu.edu.sg/soa_research/1577
https://ink.library.smu.edu.sg/context/soa_research/article/2604/viewcontent/BROWN_et_al_2010_Contemporary_Accounting_Research__1_.pdf
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Institution: Singapore Management University
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spelling sg-smu-ink.soa_research-26042017-08-08T09:57:01Z Brokerage industry self-regulation: The case of analysts’ background disclosures BROWN, Lawrence HUGON, Artur LU, Hai We evaluate an industry disclosure initiative designed to inform investors, the practice of providing information regarding investment professionals’ backgrounds. Implicit in the motivation for this initiative is the presumed relevance of background information to investors seeking investment professionals’ guidance. We find that analysts with disclosure incidents forecast less accurately than a matched sample of analysts without such disclosures, and that the market views disclosed analysts’ earnings forecasts as less credible than those of the matched sample. Our evidence is consistent with disclosures signaling a persistent analyst characteristic. We conclude that analyst backgrounds are informative regarding both the accuracy and credibility of their earnings forecasts, and that investors who are uninformed as to an analyst’s background can benefit from these disclosures. 2009-11-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/soa_research/1577 info:doi/10.1111/j.1911-3846.2010.01035.x https://ink.library.smu.edu.sg/context/soa_research/article/2604/viewcontent/BROWN_et_al_2010_Contemporary_Accounting_Research__1_.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Accountancy eng Institutional Knowledge at Singapore Management University Analysts earnings forecasts professionalism self-regulation Accounting Industrial Organization
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Analysts
earnings forecasts
professionalism
self-regulation
Accounting
Industrial Organization
spellingShingle Analysts
earnings forecasts
professionalism
self-regulation
Accounting
Industrial Organization
BROWN, Lawrence
HUGON, Artur
LU, Hai
Brokerage industry self-regulation: The case of analysts’ background disclosures
description We evaluate an industry disclosure initiative designed to inform investors, the practice of providing information regarding investment professionals’ backgrounds. Implicit in the motivation for this initiative is the presumed relevance of background information to investors seeking investment professionals’ guidance. We find that analysts with disclosure incidents forecast less accurately than a matched sample of analysts without such disclosures, and that the market views disclosed analysts’ earnings forecasts as less credible than those of the matched sample. Our evidence is consistent with disclosures signaling a persistent analyst characteristic. We conclude that analyst backgrounds are informative regarding both the accuracy and credibility of their earnings forecasts, and that investors who are uninformed as to an analyst’s background can benefit from these disclosures.
format text
author BROWN, Lawrence
HUGON, Artur
LU, Hai
author_facet BROWN, Lawrence
HUGON, Artur
LU, Hai
author_sort BROWN, Lawrence
title Brokerage industry self-regulation: The case of analysts’ background disclosures
title_short Brokerage industry self-regulation: The case of analysts’ background disclosures
title_full Brokerage industry self-regulation: The case of analysts’ background disclosures
title_fullStr Brokerage industry self-regulation: The case of analysts’ background disclosures
title_full_unstemmed Brokerage industry self-regulation: The case of analysts’ background disclosures
title_sort brokerage industry self-regulation: the case of analysts’ background disclosures
publisher Institutional Knowledge at Singapore Management University
publishDate 2009
url https://ink.library.smu.edu.sg/soa_research/1577
https://ink.library.smu.edu.sg/context/soa_research/article/2604/viewcontent/BROWN_et_al_2010_Contemporary_Accounting_Research__1_.pdf
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