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| Does Internal Control Quality Affect Analyst Behavior?:Evidence from China |
| DONG Wang, CHEN Jun, CHEN Hanwen
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School of Management, Zhejiang University;
Business School, University of International Business and Economics |
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Abstract This paper examines the relation between internal control quality, the number of analysts following, accuracy of analyst earnings forecasts and forecast dispersion. Using a sample of A-share listed firms from 2007 to 2016, we find that: First, firms with better internal control attract more analysts. Second, analysts forecast accuracy is positively related to internal control quality. However, this positive relation only exists in the overestimated subsample. Third, forecast dispersion is not significantly related to internal control quality. This study not only contributes to the literature on both analyst behavior and internal control, but also offers valuable implications to regulars.
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Received: 16 July 2013
Published: 02 April 2018
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