The expectations management literature has so far focused on firms meeting the analyst consensus forecast — the expectations of analysts as a group — at earnings announcements. In this study we argue that investors may use individual analyst forecasts as additional benchmarks in evaluating...

We examine whether financial analysts—sophisticated market participants—are subject to limited attention. We find that when analysts have another firm in their coverage portfolio announcing earnings on the same day as the sample firm (a “concurrent announcement”), they are less likely to...

This study reports the results of an investigation into the profitability of audit engagements. The study is motivated by the frequently expressed concern regarding the lack of competitiveness within the audit market, based on trends of increasing concentration of suppliers. Increasing...

This paper investigates the competitiveness of the U.S. audit market and the effects of competition on audit quality. Using a proprietary database of auditor realization rates, we provide the first empirical assessment of abnormal profit persistence in the U.S. audit market following methodology...

AbstractThe Effect of Investor Relations on Income Objectives andMeeting ExpectationsBy: Marcus KirkOver a quarter of publicly listed firms employ National InvestorRelationsInstitute (NIRI) members. Yet we know little about the impact ofinvestor relations (IR)for these firms. I examine the role...

Our study introduces analyst/investor days, a new disclosure medium that allows for private interactions with influential market participants. We also highlight interdependencies in the choice and information content of analyst/investor days and conference presentations, a well-researched...

We examine the incentives of socially responsible firms, relative to a set of control firms, to engage in earnings management. We measure socially responsible behavior using various proxies of corporate social responsibility, and earnings management using abnormal levels of accruals, cash flows,...