{"title":"隶属于财阀的分析师和解读应计项目的偏差","authors":"Seunghee Yang , Lee-Seok Hwang , Yewon Kim","doi":"10.1016/j.jcae.2024.100402","DOIUrl":null,"url":null,"abstract":"<div><p>This study investigates whether analysts exhibit accrual-related biases in forecasting earnings in the presence of conflicts of interest arising from business group affiliation. Our findings reveal that chaebol-affiliated analysts are more likely to overreact to accruals than do independent analysts by overestimating the persistence of accruals. Notably, affiliated analysts’ accrual-related biases are not reduced with analysts’ experience but intensify when analysts have stronger incentives to provide favorable forecasts for member firms. This suggests a possibility that in the presence of conflicts of interest analysts do not fully incorporate the implications of accruals into their forecasts, potentially with an intention to benefit group interests. In additional analyses, we find that the presence of affiliated analysts does not exacerbate accrual mispricing, which suggests that investors do not take affiliated analysts’ biased forecasts at face value. We also provide evidence that despite issuing less accurate forecasts than unaffiliated analysts, affiliated analysts do not necessarily encounter more career disadvantages.</p></div>","PeriodicalId":46693,"journal":{"name":"Journal of Contemporary Accounting & Economics","volume":null,"pages":null},"PeriodicalIF":2.9000,"publicationDate":"2024-01-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":"{\"title\":\"Chaebol-affiliated analysts and biases in interpreting accruals\",\"authors\":\"Seunghee Yang , Lee-Seok Hwang , Yewon Kim\",\"doi\":\"10.1016/j.jcae.2024.100402\",\"DOIUrl\":null,\"url\":null,\"abstract\":\"<div><p>This study investigates whether analysts exhibit accrual-related biases in forecasting earnings in the presence of conflicts of interest arising from business group affiliation. Our findings reveal that chaebol-affiliated analysts are more likely to overreact to accruals than do independent analysts by overestimating the persistence of accruals. Notably, affiliated analysts’ accrual-related biases are not reduced with analysts’ experience but intensify when analysts have stronger incentives to provide favorable forecasts for member firms. This suggests a possibility that in the presence of conflicts of interest analysts do not fully incorporate the implications of accruals into their forecasts, potentially with an intention to benefit group interests. In additional analyses, we find that the presence of affiliated analysts does not exacerbate accrual mispricing, which suggests that investors do not take affiliated analysts’ biased forecasts at face value. We also provide evidence that despite issuing less accurate forecasts than unaffiliated analysts, affiliated analysts do not necessarily encounter more career disadvantages.</p></div>\",\"PeriodicalId\":46693,\"journal\":{\"name\":\"Journal of Contemporary Accounting & Economics\",\"volume\":null,\"pages\":null},\"PeriodicalIF\":2.9000,\"publicationDate\":\"2024-01-23\",\"publicationTypes\":\"Journal Article\",\"fieldsOfStudy\":null,\"isOpenAccess\":false,\"openAccessPdf\":\"\",\"citationCount\":\"0\",\"resultStr\":null,\"platform\":\"Semanticscholar\",\"paperid\":null,\"PeriodicalName\":\"Journal of Contemporary Accounting & Economics\",\"FirstCategoryId\":\"96\",\"ListUrlMain\":\"https://www.sciencedirect.com/science/article/pii/S181556692400002X\",\"RegionNum\":3,\"RegionCategory\":\"管理学\",\"ArticlePicture\":[],\"TitleCN\":null,\"AbstractTextCN\":null,\"PMCID\":null,\"EPubDate\":\"\",\"PubModel\":\"\",\"JCR\":\"Q2\",\"JCRName\":\"BUSINESS, FINANCE\",\"Score\":null,\"Total\":0}","platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Contemporary Accounting & Economics","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S181556692400002X","RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
Chaebol-affiliated analysts and biases in interpreting accruals
This study investigates whether analysts exhibit accrual-related biases in forecasting earnings in the presence of conflicts of interest arising from business group affiliation. Our findings reveal that chaebol-affiliated analysts are more likely to overreact to accruals than do independent analysts by overestimating the persistence of accruals. Notably, affiliated analysts’ accrual-related biases are not reduced with analysts’ experience but intensify when analysts have stronger incentives to provide favorable forecasts for member firms. This suggests a possibility that in the presence of conflicts of interest analysts do not fully incorporate the implications of accruals into their forecasts, potentially with an intention to benefit group interests. In additional analyses, we find that the presence of affiliated analysts does not exacerbate accrual mispricing, which suggests that investors do not take affiliated analysts’ biased forecasts at face value. We also provide evidence that despite issuing less accurate forecasts than unaffiliated analysts, affiliated analysts do not necessarily encounter more career disadvantages.