IDEAS home Printed from https://ideas.repec.org/a/eme/ijaimp/v23y2015i1p2-15.html
   My bibliography  Save this article

Voluntary accounting changes and analyst following

Author

Listed:
  • Tzu-Ling Huang
  • Tawei Wang
  • Jia-Lang Seng

Abstract

Purpose - – This study aims to examine the relation between voluntary accounting changes (VACs) and analyst following. Design/methodology/approach - – A sample of firms was collected with VACs in the period from 1994 to 2008 and their major competitors, as well as industry benchmarking firms without accounting changes. The authors then investigated how VACs affect analysts’ following decisions given accounting choice heterogeneity. Findings - – The findings demonstrate that VAC is negatively associated with analysts’ following decisions. Such association becomes stronger after taking into account accounting choice heterogeneity before and after VACs. Originality/value - – This study contributes to the literature in the economic consequences of VACs and suggests that analysts presumably are able to comprehend the differences in accounting choices. However, the additional level of effort and the concern of manipulation may affect analysts’ behavior. This study documents whether VAC results in different accounting choices from the firm’s major competitors or industry benchmarking firms.

Suggested Citation

  • Tzu-Ling Huang & Tawei Wang & Jia-Lang Seng, 2015. "Voluntary accounting changes and analyst following," International Journal of Accounting & Information Management, Emerald Group Publishing Limited, vol. 23(1), pages 2-15, March.
    • Handle: RePEc:eme:ijaimp:v:23:y:2015:i:1:p:2-15
    DOI: 10.1108/IJAIM-03-2014-0018
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/IJAIM-03-2014-0018/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/IJAIM-03-2014-0018/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/IJAIM-03-2014-0018?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:ijaimp:v:23:y:2015:i:1:p:2-15. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.