The impact of disclosure quality on analyst forecasts in China

References

• Abarbanell, J. S., & Bernard, V. L. (1992). Tests of analysts’ overreaction/underreaction to earnings information as an explanation for anomalous stock price behavior. The Journal of Finance, 47(3), 1181–1207. https://doi.org/10.1111/j.1540-6261.1992.tb04010.x
   Web of Science ®Google Scholar
• Ali, A., Klasa, S., & Yeung, E. (2014). Industry concentration and corporate disclosure policy. Journal of Accounting and Economics, 58(2-3), 240–264. https://doi.org/10.1016/j.jacceco.2014.08.004
   Web of Science ®Google Scholar
• Bai, X. (2009). The multiple influence of corporate disclosure policy on analyst forecast. Journal of Financial Research, 4, 92–112. (in Chinese)
   Google Scholar
• Ball, R., Kothari, S., & Robin, A. (2000). The effect of international institutional factors on properties of accounting earnings. Journal of Accounting and Economics, 29(1), 1–51. https://doi.org/10.1016/S0165-4101(00)00012-4
   Web of Science ®Google Scholar
• Barry, C. B., & Brown, S. J. (1985). Differential information and security market equilibrium. Journal of Financial and Quantitative Analysis, 20(4), 407–422. https://doi.org/10.2307/2330758
   Web of Science ®Google Scholar
• Barth, M. E., Kasznik, R., & McNichols, M. F. (2001). Analyst coverage and intangible assets. Journal of Accounting Research, 39(1), 1–34. https://doi.org/10.1111/1475-679X.00001
   Web of Science ®Google Scholar
• Basu, S., Hwang, L., & Jan, C. L. (1998). International variation in accounting measurement rules and analysts’ earnings forecast errors. Journal of Business Finance & Accounting, 25(9-10), 1207–1247. https://doi.org/10.1111/1468-5957.00234
   Google Scholar
• Bhushan, R. (1989). Firm characteristics and analyst following. Journal of Accounting and Economics, 11(2-3), 255–274. https://doi.org/10.1016/0165-4101(89)90008-6
   Web of Science ®Google Scholar
• Botosan, C. A. (1997). Disclosure level and the cost of equity capital. The Accounting Review, 72(3), 323–349.
   Web of Science ®Google Scholar
• Brennan, M. J., & Subrahmanyam, A. (1995). Investment analysis and price formation in securities markets. Journal of Financial Economics, 38(3), 361–381. https://doi.org/10.1016/0304-405X(94)00811-E
   Web of Science ®Google Scholar
• Brown, L. D., Hagerman, R. L., Griffin, P. A., & Zmijewski, M. E. (1987). Security analyst superiority relative to univariate time-series models in forecasting quarterly earnings. Journal of Accounting and Economics, 9(1), 61–87. https://doi.org/10.1016/0165-4101(87)90017-6
   Web of Science ®Google Scholar
• Brown, L. D., & Hugon, A. (2009). Team earnings forecasting. Review of Accounting Studies, 14(4), 587–607. https://doi.org/10.1007/s11142-008-9076-1
   Web of Science ®Google Scholar
• Brown, S., & Hillegeist, S. A. (2007). How disclosure quality affects the level of information asymmetry. Review of Accounting Studies, 12(2-3), 443–477. https://doi.org/10.1007/s11142-007-9032-5
   Web of Science ®Google Scholar
• Byard, D., Li, Y., & Yu, Y. (2011). The effect of mandatory IFRS adoption on financial analysts’ information environment. Journal of Accounting Research, 49(1), 69–96. https://doi.org/10.1111/j.1475-679X.2010.00390.x
   Web of Science ®Google Scholar
• Byard, D., & Shaw, K. W. (2003). Corporate disclosure quality and properties of analysts’ information environment. Journal of Accounting, Auditing & Finance, 18(3), 355–378. https://doi.org/10.1177/0148558X0301800304
   Google Scholar
• Call, A. C., Chen, S., & Tong, Y. H. (2009). Are analysts’ earnings forecasts more accurate when accompanied by cash flow forecasts? Review of Accounting Studies, 14(2-3), 358–391. https://doi.org/10.1007/s11142-009-9086-7
   Web of Science ®Google Scholar
• Callen, J. L., & Fang, X. (2013). Institutional investor stability and crash risk: Monitoring versus short-termism? Journal of Banking & Finance, 37(8), 3047–3063. https://doi.org/10.1016/j.jbankfin.2013.02.018
   Web of Science ®Google Scholar
• Cerf, A. R. (1961). Corporate reporting and investment decisions. Public Accounting Research Program, Institute of Business and Economic Research, University of California.
   Google Scholar
• Chan, K., & Hameed, A. (2006). Stock price synchronicity and analyst coverage in emerging markets. Journal of Financial Economics, 80(1), 115–147. https://doi.org/10.1016/j.jfineco.2005.03.010
   Web of Science ®Google Scholar
• Chang, X., Dasgupta, S., & Hilary, G. (2006). Analyst coverage and financing decisions. The Journal of Finance, 61(6), 3009–3048. https://doi.org/10.1111/j.1540-6261.2006.01010.x
   Web of Science ®Google Scholar
• Chen, T., & Martin, X. (2011). Do bank-affiliated analysts benefit from lending relationships? Journal of Accounting Research, 49(3), 633–675. https://doi.org/10.1111/j.1475-679X.2011.00399.x
   Web of Science ®Google Scholar
• Chen, W. P., Chung, H., Lee, C., & Liao, W. L. (2007). Corporate governance and equity liquidity: Analysis of S&P transparency and disclosure rankings. Corporate Governance: An International Review, 15(4), 644–660. https://doi.org/10.1111/j.1467-8683.2007.00594.x
   Web of Science ®Google Scholar
• Chen, Y.-C., Hung, M., & Wang, Y. (2018). The effect of mandatory CSR disclosure on firm profitability and social externalities: Evidence from China. Journal of Accounting and Economics, 65(1), 169–190. https://doi.org/10.1016/j.jacceco.2017.11.009
   Web of Science ®Google Scholar
• Chung, C. Y., & Wang, K. (2014). Do institutional investors monitor management? Evidence from the relationship between institutional ownership and capital structure. The North American Journal of Economics and Finance, 30, 203–233. https://doi.org/10.1016/j.najef.2014.10.001
   Web of Science ®Google Scholar
• Clement, M. B. (1999). Analyst forecast accuracy: Do ability, resources, and portfolio complexity matter? Journal of Accounting and Economics, 27(3), 285–303. https://doi.org/10.1016/S0165-4101(99)00013-0
   Web of Science ®Google Scholar
• Cornett, M. M., Marcus, A. J., Saunders, A., & Tehranian, H. (2007). The impact of institutional ownership on corporate operating performance. Journal of Banking & Finance, 31(6), 1771–1794. https://doi.org/10.1016/j.jbankfin.2006.08.006
   Web of Science ®Google Scholar
• Daley, L. A., Senkow, D. W., & Vigeland, R. L. (1988). Analysts’ forecasts, earnings variability, and option pricing: Empirical evidence. The Accounting Review, 63(4), 563–585.
   Web of Science ®Google Scholar
• Das, S., Levine, C. B., & Sivaramakrishnan, K. (1998). Earnings predictability and bias in analysts’ earnings forecasts. The Accounting Review, 73(2), 277–294.
   Web of Science ®Google Scholar
• De Bondt, W. F., & Thaler, R. H. (1990). Do security analysts overreact? The American Economic Review, 80(2), 52–57.
   Web of Science ®Google Scholar
• Dechow, P. M., Hutton, A. P., & Sloan, R. G. (2000). The relation between analysts’ forecasts of long-term earnings growth and stock price performance following equity offerings. Contemporary Accounting Research, 17(1), 1–32. https://doi.org/10.1111/j.1911-3846.2000.tb00908.x
   Google Scholar
• Dehaan, E., Madsen, J., & Piotroski, J. D. (2017). Do weather-induced moods affect the processing of earnings news? Journal of Accounting Research, 55(3), 509–550. https://doi.org/10.1111/1475-679X.12160
   Web of Science ®Google Scholar
• Dhaliwal, D. S., Radhakrishnan, S., Tsang, A., & Yang, Y. G. (2012). Nonfinancial disclosure and analyst forecast accuracy: International evidence on corporate social responsibility disclosure. The Accounting Review, 87(3), 723–759. https://doi.org/10.2308/accr-10218
   Web of Science ®Google Scholar
• Dugar, A., & Nathan, S. (1995). The effect of investment banking relationships on financial analysts’ earnings forecasts and investment recommendations. Contemporary Accounting Research, 12(1), 131–160. https://doi.org/10.1111/j.1911-3846.1995.tb00484.x
   Google Scholar
• Dunn, K. A., & Mayhew, B. W. (2004). Audit firm industry specialization and client disclosure quality. Review of Accounting Studies, 9(1), 35–58. https://doi.org/10.1023/B:RAST.0000013628.49401.69
   Web of Science ®Google Scholar
• Durnev, A., Morck, R., & Yeung, B. (2004). Value-enhancing capital budgeting and firm-specific stock return variation. The Journal of Finance, 59(1), 65–105. https://doi.org/10.1111/j.1540-6261.2004.00627.x
   Web of Science ®Google Scholar
• Durnev, A., Morck, R., Yeung, B., & Zarowin, P. (2003). Does greater firm-specific return variation mean more or less informed stock pricing? Journal of Accounting Research, 41(5), 797–836. https://doi.org/10.1046/j.1475-679X.2003.00124.x
   Web of Science ®Google Scholar
• Easterwood, J. C., & Nutt, S. R. (1999). Inefficiency in analysts’ earnings forecasts: Systematic misreaction or systematic optimism? The Journal of Finance, 54(5), 1777–1797. https://doi.org/10.1111/0022-1082.00166
   Web of Science ®Google Scholar
• Fama, E. F., & French, K. R. (1992). The cross-section of expected stock returns. The Journal of Finance, 47(2), 427–465. https://doi.org/10.1111/j.1540-6261.1992.tb04398.x
   Web of Science ®Google Scholar
• Fama, E. F., & MacBeth, J. D. (1973). Risk, return, and equilibrium: Empirical tests. Journal of Political Economy, 81(3), 607–636. https://doi.org/10.1086/260061
   Web of Science ®Google Scholar
• Fang, J. (2007). Corporate disclosure quality and analyst forecasts. Journal of Financial Research, 6, 136–148 (in Chinese).
   Google Scholar
• Forker, J. J. (1992). Corporate governance and disclosure quality. Accounting and Business Research, 22(86), 111–124. https://doi.org/10.1080/00014788.1992.9729426
   Google Scholar
• Francis, J., & Philbrick, D. (1993). Analysts’ decisions as products of a multi-task environment. Journal of Accounting Research, 31(2), 216–230. https://doi.org/10.2307/2491271
   Web of Science ®Google Scholar
• Frankel, R., Kothari, S., & Weber, J. (2006). Determinants of the informativeness of analyst research. Journal of Accounting and Economics, 41(1-2), 29–54. https://doi.org/10.1016/j.jacceco.2005.10.004
   Web of Science ®Google Scholar
• Gao, L., & Kling, G. (2012). The impact of corporate governance and external audit on compliance to mandatory disclosure requirements in China. Journal of International Accounting, Auditing and Taxation, 21(1), 17–31. https://doi.org/10.1016/j.intaccaudtax.2012.01.002
   Google Scholar
• Gao, P. (2010). Disclosure quality, cost of capital, and investor welfare. The Accounting Review, 85(1), 1–29. https://doi.org/10.2308/accr.2010.85.1.1
   Web of Science ®Google Scholar
• Glaum, M., Baetge, J., Grothe, A., & Oberdörster, T. (2013). Introduction of international accounting standards, disclosure quality and accuracy of analysts’ earnings forecasts. European Accounting Review, 22(1), 79–116. https://doi.org/10.1080/09638180.2011.558301
   Web of Science ®Google Scholar
• Gu, Z., & Wu, J. S. (2003). Earnings skewness and analyst forecast bias. Journal of Accounting and Economics, 35(1), 5–29. https://doi.org/10.1016/S0165-4101(02)00095-2
   Web of Science ®Google Scholar
• Gul, F. A., Kim, J.-B., & Qiu, A. A. (2010). Ownership concentration, foreign shareholding, audit quality, and stock price synchronicity: Evidence from China. Journal of Financial Economics, 95(3), 425–442. https://doi.org/10.1016/j.jfineco.2009.11.005
   Web of Science ®Google Scholar
• Hahn, T., & Song, M. (2013). Regulation Fair Disclosure and analysts’ reliance on earnings announcements. Journal of Accounting and Public Policy, 32(1), 26–43. https://doi.org/10.1016/j.jaccpubpol.2012.09.001
   Web of Science ®Google Scholar
• Healy, P. M., & Palepu, K. G. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of Accounting and Economics, 31(1-3), 405–440. https://doi.org/10.1016/S0165-4101(01)00018-0
   Web of Science ®Google Scholar
• Hope, O. K. (2003). Disclosure practices, enforcement of accounting standards, and analysts’ forecast accuracy: An international study. Journal of Accounting Research, 41(2), 235–272. https://doi.org/10.1111/1475-679X.00102
   Web of Science ®Google Scholar
• Hwang, L.-S., Jan, C.-L., & Basu, S. (1996). Loss firms and analysts’ earnings forecast errors. The Journal of Financial Statement Analysis, 1(2).
   Google Scholar
• Jacob, J., Lys, T. Z., & Neale, M. A. (1999). Expertise in forecasting performance of security analysts. Journal of Accounting and Economics, 28(1), 51–82. https://doi.org/10.1016/S0165-4101(99)00016-6
   Web of Science ®Google Scholar
• Kini, O., Mian, S., Rebello, M., & Venkateswaran, A. (2009). On the structure of analyst research portfolios and forecast accuracy. Journal of Accounting Research, 47(4), 867–909. https://doi.org/10.1111/j.1475-679X.2009.00338.x
   Web of Science ®Google Scholar
• Klein, A. (1990). A direct test of the cognitive bias theory of share price reversals. Journal of Accounting and Economics, 13(2), 155–166. https://doi.org/10.1016/0165-4101(90)90028-3
   Web of Science ®Google Scholar
• Kothari, S. P., Li, X., & Short, J. E. (2009). The effect of disclosures by management, analysts, and business press on cost of capital, return volatility, and analyst forecasts: A study using content analysis. The Accounting Review, 84(5), 1639–1670. https://doi.org/10.2308/accr.2009.84.5.1639
   Web of Science ®Google Scholar
• Kumar, A. (2010). Self-selection and the forecasting abilities of female equity analysts. Journal of Accounting Research, 48(2), 393–435. https://doi.org/10.1111/j.1475-679X.2009.00362.x
   Web of Science ®Google Scholar
• Lang, M. H., Lins, K. V., & Miller, D. P. (2003). ADRs, analysts, and accuracy: Does cross listing in the United States improve a firm’s information environment and increase market value? Journal of Accounting Research, 41(2), 317–345. https://doi.org/10.1111/1475-679X.00106
   Web of Science ®Google Scholar
• Lang, M. H., & Lundholm, R. J. (1996). Corporate disclosure policy and analyst behavior. The Accounting Review, 71(4), 467–492.
   Web of Science ®Google Scholar
• Lang, M. H., & Lundholm, R. J. (2000). Voluntary disclosure and equity offerings: Reducing information asymmetry or hyping the stock? Contemporary Accounting Research, 17(4), 623–662. https://doi.org/10.1506/9N45-F0JX-AXVW-LBWJ
   Google Scholar
• Laster, D., Bennett, P., & Geoum, I. S. (1999). Rational bias in macroeconomic forecasts. The Quarterly Journal of Economics, 114(1), 293–318. https://doi.org/10.1162/003355399555918
   Web of Science ®Google Scholar
• Lee, L. F., Hutton, A. P., & Shu, S. (2015). The role of social media in the capital market: Evidence from consumer product recalls. Journal of Accounting Research, 53(2), 367–404. https://doi.org/10.1111/1475-679X.12074
   Web of Science ®Google Scholar
• Lehavy, R., Li, F., & Merkley, K. (2011). The effect of annual report readability on analyst following and the properties of their earnings forecasts. The Accounting Review, 86(3), 1087–1115. https://doi.org/10.2308/accr.00000043
   Web of Science ®Google Scholar
• Lim, T. (2001). Rationality and analysts’ forecast bias. The Journal of Finance, 56(1), 369–385. https://doi.org/10.1111/0022-1082.00329
   Web of Science ®Google Scholar
• Lin, H.-W., & McNichols, M. F. (1998). Underwriting relationships, analysts’ earnings forecasts and investment recommendations. Journal of Accounting and Economics, 25(1), 101–127. https://doi.org/10.1016/S0165-4101(98)00016-0
   Web of Science ®Google Scholar
• Lobo, G. J., Song, M., & Stanford, M. (2012). Accruals quality and analyst coverage. Journal of Banking & Finance, 36(2), 497–508. https://doi.org/10.1016/j.jbankfin.2011.08.006
   Web of Science ®Google Scholar
• Lys, T., & Soo, L. G. (1995). Analysts’ forecast precision as a response to competition. Journal of Accounting, Auditing & Finance, 10(4), 751–765. https://doi.org/10.1177/0148558X9501000404
   Google Scholar
• Mendenhall, R. R. (1991). Evidence on the possible underweighting of earnings-related information. Journal of Accounting Research, 29(1), 170–179. https://doi.org/10.2307/2491035
   Web of Science ®Google Scholar
• Michaely, R., & Womack, K. L. (1999). Conflict of interest and the credibility of underwriter analyst recommendations. Review of Financial Studies, 12(4), 653–686. https://doi.org/10.1093/rfs/12.4.653
   Web of Science ®Google Scholar
• Mikhail, M. B., Walther, B. R., & Willis, R. H. (2003). The effect of experience on security analyst underreaction. Journal of Accounting and Economics, 35(1), 101–116. https://doi.org/10.1016/S0165-4101(02)00099-X
   Web of Science ®Google Scholar
• Morck, R., Yeung, B., & Yu, W. (2000). The information content of stock markets: Why do emerging markets have synchronous stock price movements? Journal of Financial Economics, 58(1-2), 215–260. https://doi.org/10.1016/S0304-405X(00)00071-4
   Web of Science ®Google Scholar
• Myers, S. C., & Majluf, N. S. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13(2), 187–221. https://doi.org/10.1016/0304-405X(84)90023-0
   Web of Science ®Google Scholar
• Piotroski, J. D., & Roulstone, D. T. (2004). The influence of analysts, institutional investors, and insiders on the incorporation of market, industry, and firm-specific information into stock prices. The Accounting Review, 79(4), 1119–1151. https://doi.org/10.2308/accr.2004.79.4.1119
   Web of Science ®Google Scholar
• Pivac, S., Vuko, T., & Cular, M. (2017). Analysis of annual report disclosure quality for listed companies in transition countries. Economic Research-Ekonomska Istraživanja, 30(1), 721–731. https://doi.org/10.1080/1331677X.2017.1311231
   Web of Science ®Google Scholar
• Scharfstein, D. S., & Stein, J. C. (1990). Herd behavior and investment. The American Economic Review, 80(3), 465–479.
   Web of Science ®Google Scholar
• Sengupta, P. (1998). Corporate disclosure quality and the cost of debt. The Accounting Review, 73(4), 459–474.
   Web of Science ®Google Scholar
• Singh, D. A., & Gaur, A. S. (2009). Business group affiliation, firm governance, and firm performance: Evidence from China and India. Corporate Governance: An International Review, 17(4), 411–425. https://doi.org/10.1111/j.1467-8683.2009.00750.x
   Web of Science ®Google Scholar
• Skinner, D. J. (1997). Earnings disclosures and stockholder lawsuits. Journal of Accounting and Economics, 23(3), 249–282. https://doi.org/10.1016/S0165-4101(97)00010-4
   Web of Science ®Google Scholar
• Walther, B. R., & Willis, R. H. (2013). Do investor expectations affect sell-side analysts’ forecast bias and forecast accuracy? Review of Accounting Studies, 18(1), 207–227. https://doi.org/10.1007/s11142-012-9204-9
   Web of Science ®Google Scholar
• Wang, B., & Liang, X. (2008). Corporate governance, financial condition and quality of disclosure: Evidence from Shenzhen Stock Exchange. Accounting Research, 3, 31–38. (in Chinese)
   Google Scholar
• Wu, S., & Cui, H. (2002). Consequences of the concentrated ownership structure in mainland China – Evidence of year 2000. Paper presented at the EFA 2002 Berlin Meetings; EFMA 2002 London Meetings; Sauder School of Business Working Paper.
   Google Scholar
• Xu, N., Chan, K. C., Jiang, X., & Yi, Z. (2013). Do star analysts know more firm-specific information? Evidence from China. Journal of Banking & Finance, 37(1), 89–102. https://doi.org/10.1016/j.jbankfin.2012.08.014
   Web of Science ®Google Scholar
• Yu, F. F. (2008). Analyst coverage and earnings management. Journal of Financial Economics, 88(2), 245–271. https://doi.org/10.1016/j.jfineco.2007.05.008
   Web of Science ®Google Scholar
• Zeng, Y., & Lu, Z. (2006). The relationship between disclosure quality and cost of equity capital of listed companies in China. Economic Research Journal, 2, 69–79. (in Chinese)
   Google Scholar
• Zhang, Z., Yang, F., & Yuan, Q. (2007). Enhancing disclosure quality of listed companies could improve corporate performance? Accounting Research, 10, 16–23. (in Chinese)
   Google Scholar