The influence of audit firm specialization on analysts' forecast errors

Jeff L. Payne

doi:10.2308/aud.2008.27.2.109

The influence of audit firm specialization on analysts' forecast errors

Jeff L. Payne

Accountancy

Research output: Contribution to journal › Article › peer-review

52 Scopus citations

Abstract

This study investigates audit firm specialization in settings where managers have incentives to modify earnings to achieve analysts' earnings forecasts. The results indicate that audit firms that have a large market share of clients within a particular industry, and audit firms that receive a significant portion of their firm revenues from a specific industry, are associated with audited financial statement earnings that increase absolute levels of analysts' forecast error and are less likely to just meet or beat analysts' forecasts.

Original language	English
Pages (from-to)	109-136
Number of pages	28
Journal	Auditing
Volume	27
Issue number	2
DOIs	https://doi.org/10.2308/aud.2008.27.2.109
State	Published - Nov 2008

Keywords

Analysts' forecast error
Audit quality
Auditor specialization

ASJC Scopus subject areas

Accounting
Finance
Economics and Econometrics

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10.2308/aud.2008.27.2.109

Cite this

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The influence of audit firm specialization on analysts' forecast errors

Abstract

Keywords

ASJC Scopus subject areas

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