Frijns, BGarel, A2025-06-252025-06-252021-08-01Economics Letters, ISSN: 0165-1765 (Print), Elsevier BV, 205, 109957-109957. doi: 10.1016/j.econlet.2021.1099570165-1765http://hdl.handle.net/10292/19365We examine how cultural distance between an analyst and a CEO is associated with earnings forecast performance. Using a sample of 283,062 analyst-firm-year earnings forecasts over the period 1992–2016, we find that greater cultural distance is associated with greater forecast error. This finding is robust to the use of alternative culture frameworks. We further document that our result is mainly driven by a culture effect rather than bilateral trust or a shared common language.© 2021 The Author(s). Published by Elsevier B.V. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/)http://creativecommons.org/licenses/by/4.0/38 Economics14 EconomicsEconomics38 EconomicsJournal ArticleOpenAccess10.1016/j.econlet.2021.109957