CEO turnover taxes analyst attention, skewing broader forecasts

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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.