We examine the effect of short selling on analyst forecast quality. Using the removal of the tick test from Regulation SHO, we find that increased ease of short selling improves analyst earnings forecast quality. Examining underlying mechanisms for the improvement, the evidence is consistent...

Although holding oneself accountable is deemed important for effective leadership, CEOs tend to demonstrate a self-serving tendency when reporting their company’s performance to the financial community. Leaders do so by providing internal accounts for favorable performance and external...