Using a stylized construct where analysts wish to minimize their forecasting error, we model forecasted earnings when firm characteristics and prior forecasts are public information but analysts can gain private information by appeasing management via deviating from the consensus. Combining...

We examine managerial incentives underlying book accruals and tax accruals affecting stock prices. Due to the differential incentives underlying tax and financial reporting systems differences between book and tax earnings are likely to exist despite the requirements of tax conformity. It is...