We investigate the role of analyst following as a monitoring device reducing earnings management. In a large international sample, we fi nd that the more transparent the country, the stronger the reduction in earnings management activity associated with analyst following. More transparent...

Using data from 21 countries, this paper analyzes the relation among analyst coverage, earnings management and financial development in an international context. We document that the effectiveness of financial analysts as monitors increases with a country's financial development (FD). We find...