Analysts cover companies more when their financial reports are less reliable. This is because analysts are more helpful when the reports don't give clear signals about future money. Analysts are especially interested in companies with uncertain business environments, even if the cash flow and stock returns are also uncertain. This means that when a company's financial reports are not very trustworthy, analysts can use this to their advantage by finding out more private information. In these cases, analysts' predictions for these companies have more private information than for others.