Earnings management and analyst forecast

Abstract

This study explores the relationship between surplus management, analysts’ attention, and earnings forecasts, which we empirically analyze by selecting selected A-share listed companies in China from 2015 to 2022 as a research sample. Our findings indicate that the higher the degree of the company's surplus management, the lower the degree of analysts’ attention. Furthermore, the higher the degree of the company's earnings management, the lower the degree of analysts’ over-attention. Moreover, the higher the branch's earnings management degree, the lower the analysts’ earnings forecasting accuracy. Finally, substantial differences exist in the relationship between earnings management and analysts’ forecasts, such as business property rights.