Review of Accounting Studies· 2026Q1
Analyst visibility and earnings forecast quality
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- Q1SCImago
- 2026year
Short summary
Reduced analyst visibility from brokerage forecast anonymization on Eikon led analysts to issue more accurate earnings forecasts, with top performers maintaining visibility through media coverage and star analyst status.
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Key points
- Brokerages switching to anonymous forecasts on Eikon reduced analyst visibility.
- Treatment analysts responded by issuing more accurate earnings forecasts post-anonymization.
- Top-performing analysts maintained visibility through media coverage and star analyst recognition.
- Analysts adopted strategies like broader/frequent forecasts and bolder target prices to regain visibility.
AI-generated from the title and abstract; the full text is not read.
Abstract
Abstract This study examines how a reduction in analysts’ visibility, resulting from brokerages’ switch to anonymous forecasts on Eikon, affects earnings forecast quality. Using a difference-in-differences design, we find that treatment analysts respond by issuing more accurate forecasts in the post-anonymization period. Treatment analysts who improve forecast quality the most can sustain visibility, as reflected in their coverage by the financial media, enhance their likelihood of being voted as star analysts, and induce greater client trading. These results are consistent with analysts’ incentives to offset the reduced visibility so as to advance their careers and increase trading commissions for their brokerages. We further show that treatment analysts use a set of visibility-enhancing strategies, including issuing broader and more frequent forecasts and setting bolder target prices. Our findings suggest that reduced visibility can prompt analysts to respond strategically in ways that can improve information quality.
The authors' abstract, as published at the source. Review of Accounting Studies, 2026 · DOI ↗
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