Full Citation

Title: The effect of cultural distance between an analyst and a CEO on analysts’ earnings forecast performance

Citation Type: Journal Article

Publication Year: 2021

ISBN:

ISSN: 01651765

DOI: 10.1016/J.ECONLET.2021.109957

NSFID:

PMCID:

PMID:

Abstract: We examine how cultural distance between an analyst and a CEO is associated with earnings forecast performance. Using a sample of 283,062 analyst-firm-year earnings forecasts over the period 1992–2016, we find that greater cultural distance is associated with greater forecast error. This finding is robust to the use of alternative culture frameworks. We further document that our result is mainly driven by a culture effect rather than bilateral trust or a shared common language.

Url: https://www.sciencedirect.com/science/article/pii/S0165176521002342

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Authors: Frijns, Bart; Garel, Alexandre

Periodical (Full): Economics Letters

Issue:

Volume: 205

Pages: 109957

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure

Countries: