CEO turnover taxes analyst attention, skewing broader forecasts

When analyst attention is absorbed by CEO turnover, other companies in their portfolio pay the price, new Cornell research finds. The study, "Analyst Rational Inattention: Evidence from CEO Turnover Events," published in the Accounting Review, finds that high-impact turnover events capture a disproportionate amount of analyst attention, leading to less-accurate forecasts for non-event companies they cover during that time.