Monash University

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Reason: Under embargo until February 2023. After this date a copy can be supplied under Section 51(2) of the Australian Copyright Act 1968 by submitting a document delivery request through your library

The Implications of Abnormal Analyst Coverage

posted on 2022-02-21, 10:33 authored by NGUYEN DIEU ANH TRAN
This study decomposes firm-level total financial analyst coverage into two components: i) expected coverage representing analysts’ mechanical coverage decision, and ii) abnormal coverage capturing analysts’ expectations about firms’ prospects. Research findings show that abnormal analyst coverage predicts firm subsequent fundamentals and future financial reporting quality. The study also shows that auditors exert more engagement efforts to the incremental audit risk associated with excessive coverage. Auditors, however, show no response the audit risk from neglected firms. Overall, this thesis suggests that abnormal analyst coverage is a leading indicator of future financial reporting and audit risk, and this information should be relevant to auditors.


Principal supervisor

Hai Au Cameron Truong

Year of Award


Department, School or Centre



Doctor of Philosophy

Degree Type



Faculty of Business and Economics