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dc.contributor.authorForst, Arno
dc.contributor.authorHettler, Barry
dc.contributor.authorBarniv, Ran Ron
dc.date.accessioned2021-09-07T17:29:25Z
dc.date.available2021-09-07T17:29:25Z
dc.date.issued10/18/2016
dc.identifier.citationForst, A., Hettler, B., & Barniv, R. R. (2016). Insider Ownership and Financial Analysts’ Information Environment: Evidence From Dual-Class Firms. Journal of Accounting, Auditing & Finance , 0148558X16670048.
dc.identifier.doihttps://doi.org/10.1177/0148558X16670048
dc.identifier.urihttp://hdl.handle.net/20.500.12648/2073
dc.descriptionArticle first published online: October 18, 2016 - https://doi.org/10.1177/0148558X16670048
dc.description.abstractWe examine the association of insider ownership with financial analysts' forecast accuracy and dispersion in a sample of U.S. dual class firms. Insider ownership exerts two effects: a positive incentive and a negative entrenchment effect. The lack of significant findings in prior research regarding the association between insider ownership and forecast accuracy may be attributable to the offsetting forces of these two effects. Using a comprehensive hand-collected sample of U.S. firms that maintain more than one class of common stock, we are able to disentangle incentive and entrenchment effects which are confounded in single-class firms. We find that disproportionate insider control is negatively associated with forecast accuracy and positively associated with forecast dispersion. Moreover, insider cash flow rights (insider voting rights) are positively (negatively) associated with forecast accuracy and negatively (positively) associated with forecast dispersion, consistent with incentive-alignment and entrenchment effects of ownership affecting financial analysts’ forecasting environment in opposite directions.
dc.subjectInsider Ownership
dc.subjectCorporate Governance
dc.subjectFinancial Analysts
dc.subjectForecast Accuracy
dc.subjectDual-Class Firms
dc.titleInsider Ownership and Financial Analysts' Information Environment: Evidence from Dual-Class Firms
dc.typearticle
dc.source.journaltitleJournal of Accounting, Auditing & Finance
refterms.dateFOA2021-09-07T17:29:25Z
dc.description.institutionSUNY Brockport
dc.source.peerreviewedTRUE
dc.source.statuspublished
dc.description.publicationtitleBusiness-Economics Faculty Publications
dc.contributor.organizationKent State University
dc.contributor.organizationThe College at Brockport
dc.contributor.organizationThe University of Texas
dc.languate.isoen_US


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