Prior studies suggest that large book-tax differences (BTDs) are associated with future earnings changes (or earnings persistence), but it is not clear what drives this association. Studies such as Lev and Nissim (2004) examine the association between total BTDs and after-tax earnings changes,...

We examine how analysts' earnings forecast properties vary when accounting information is more difficult to process. Specifically, we investigate whether analysts' forecast properties are associated with traditional real earnings management (REM) measures. We hypothesize and find that analysts'...