Analysts' attention and firms’ market sensitivity: The moderating-mediating role of earnings management in the US firms

This study examined the impact of analysts’ attention on firms' market sensitivity (that is, sensitivity to market performance measured by stock beta), considering the moderating-mediating effect of earnings management. Results indicated that analyst attention reduced market sensitivity and that earnings management simultaneously moderated and mediated the relationship between analyst attention and market sensitivity. This research offers valuable insights for market participants, including investors, consultants, and firms, and provides theoretical, practical, and methodological implications.