Top executives’ gender and analysts' earnings forecasts

This study adds a behavioral dimension to the analysts’ earnings forecast literature by examining the effect of executives’ gender on forecast accuracy. We theorize that these gender-based behavioral differences can influence analysts’ forecast accuracy. Our research documents that the presence of female CEOs significantly improves analysts’ forecast accuracy across all firms, reflecting CEO's dominant position, while female CFOs have a positive influence on analyst forecast accuracy only for firms with greater information asymmetry. Overall, the evidence shows that analysts are able to draw more accurate assessment of the firm's prospects for corporations led by female executives.