Insider Ownership and Analyst Forecast Properties

Jacqueline Wenjie Wang, Wayne W. Yu

Research output: Journal article publicationJournal articleAcademic researchpeer-review

4 Citations (Scopus)


In this article, we investigate the effect of insider ownership on analyst forecast properties and find a significant nonlinear relationship between the two. Specifically, in the low to medium range, a rise in insider ownership improves analyst forecast properties (making them more accurate and less dispersed), but a further rise in insider ownership beyond moderate levels leads to deteriorating forecasts. We also find that this nonlinear relationship is attenuated for firms in countries with better investor protection. We interpret our findings as evidence that the role of insider ownership as an interest alignment or entrenchment mechanism is diminished in these countries due to their stronger investor protection.

Original languageEnglish
Pages (from-to)125-150
Number of pages26
JournalJournal of Accounting, Auditing and Finance
Issue number1
Publication statusPublished - 1 Jan 2019


  • analyst forecast properties
  • corporate governance
  • information environment
  • insider ownership
  • investor protection

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics, Econometrics and Finance (miscellaneous)


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