Several authors have reported an unconditional size effect in returns around earnings announcements. In this study we show how this finding can be understood as resulting from ambiguity aversion. We hypothesize that analyst forecasts for smaller companies are relatively more ambiguous; hence...

This study examines the influence of managerial power on analysts' earnings forecast accuracy. CEO/Chairperson duality and voting power of management on the board are used as proxies for managerial power. After controlling for key variables that have been shown to affect analysts' forecast...