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Contemporary Accounting Research 2026

Analyst Integrity

Zhaoyang Gu1; Rubin Hao2; Jing Xue3; Chunqiu Zhang4

1 School of Accountancy, The Chinese University of Hong Kong, Hong Kong · 2 Faculty of Business Administration University of Macau Macau China · 3 School of Economics and Management Nanjing University of Science and Technology Nanjing China · 4 International Business School Suzhou, Xi’an Jiaotong‐Liverpool University (XJTLU) Suzhou China

Abstract

We empirically investigate the impact of financial analysts' integrity on their information outputs and career success. Using analysts' off‐the‐job behavior, specifically their legal records, to proxy for analyst integrity, we predict and find that weak‐integrity analysts engage more in opportunistic behaviors, including “speaking in two tongues” and earnings forecast walk‐down. These analysts obtain favorable management access and make more accurate earnings forecasts. Further analyses indicate that while the market as a whole does not distinguish weak‐integrity analysts from others, sophisticated investors discount their information outputs. Weak‐integrity analysts also experience less favorable career outcomes. Our results have important implications for investors, professional bodies, employers, and regulators.

DOI
10.1111/1911-3846.70053
Language
en
Sources
openalex crossref

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