Purpose – The purpose of this paper is to examine whether high analyst coverage increases or decreases accounting conservatism. Design/methodology/approach – Sample firms were selected from the Compustat and I/B/E/S databases for years 1989‐2006. The authors used both accrual‐based and...

Purpose – The purpose of this paper is to examine whether high analyst coverage increases or decreases accounting conservatism. Design/methodology/approach – Sample firms were selected from the Compustat and I/B/E/S databases for years 1989-2006. The authors used both accrual-based and...