795
Views
2
CrossRef citations to date
0
Altmetric
Research Article

Regional GDP Distortion and Analyst Forecast Accuracy: Evidence from China

, & ORCID Icon
Pages 437-460 | Received 11 Feb 2020, Accepted 23 Mar 2021, Published online: 23 Apr 2021

References

  • Abdolmohammadi, Mohammad, Roger Simnett, Jay C. Thibodeau, and Arnold M. Wright. 2006. “Sell-side Analysts’ Reports and the Current External Reporting Model.” Accounting Horizons 20: 375–389.
  • Agarwal, Sumit, and Robert Hauswald. 2010. “Distance and Private Information in Lending.” Review of Financial Studies 23: 2757–2788.
  • Ayers, Benjamin, and Robert N. Freeman. 1997. “Market Assessment of Industry and Firm Earnings Information.” Journal of Accounting and Economics 24: 205–218.
  • Basu, Sudipta, Stanimir Markov, and Lakshmanan Shivakumar. 2010. “Inflation, Earnings Forecasts, and Post-Earnings Announcement Drift.” Review of Accounting Studies 15: 403–440.
  • Berger, Allen N., Nathan H. Miller, Mitchell A. Petersen, Raghuram G. Rajan, and Jeremy C. Stein. 2005. “Does Function Follow Organizational Form? Evidence from the Lending Practices of Large and Small Banks.” Journal of Financial Economics 76: 237–269.
  • Bowen, Robert M., Angela K. Davis, and Dawn A. Matsumoto. 2002. “Do Conference Calls Affect Analysts’ Forecasts?” The Accounting Review 77: 285–316.
  • Brown, Lawrence D., Andrew C. Call, Michael B. Clement, and Nathan Y. Sharp. 2015. “Inside the “Black Box” of Sell-Side Financial Analysts.” Journal of Accounting Research 53: 1–47.
  • Bushee, Brian J., John E. Core, Wayne Guay, and Sophia J. W. Hamm. 2010. “The Role of the Business Press as an Information Intermediary.” Journal of Accounting Research 48: 1–19.
  • Byard, Donal, and Kenneth W. Shaw. 2003. “Corporate Disclosure Quality and Properties of Analysts’ Information Environment.” Journal of Accounting, Auditing & Finance 18: 355–378.
  • Chan, Kam C., Tan Weiqiang, Wang Wenming, and Feida F. Zhang. 2021. “Do Local and Foreign Investors React Homogeneously to Earnings Announcements? Evidence from U.S. Cross-Listings.” Working paper, University of Queensland.
  • Chan, Kam C., Feida F. Zhang, and Weining Zhang. 2013. “Analyst Coverage and Types of Institutional Investors.” Review of Accounting and Finance 12 (1): 60–80.
  • Chen, J., K. C. Chan, W. Dong, and F. Zhang. 2017. “Internal Control and Stock Price Crash Risk: Evidence from China.” European Accounting Review 26 (1): 125–152.
  • Chen, Xia, Qiang Cheng, Ying Hao, and Qiang Liu. 2020. “GDP Growth Incentives and Earnings Management: Evidence from China.” Review of Accounting Studies 25: 1002–1039.
  • Chen, Ye, Hongbin Li, and Li An Zhou. 2005. “Relative Performance Evaluation and the Turnover of Provincial Leaders in China.” Economics Letters 88: 421–425.
  • Chen, S., X. Ni, and J. Y. Tong. 2016. “Gender diversity in the boardroom and risk management: A case of RandD investment.” Journal of Business Ethics 136 (3): 599–621.
  • Chen, Shimin, Xu Ni, and Feida Zhang. 2018. “CEO Retirement, Corporatee Governance and Conditonal Accounting Conservatism.” European Accounting Review 27 (3): 437–465.
  • Chen, Xi, and William D. Nordhaus. 2011. “Using Luminosity Data a Proxy for Economic Statistics.” Proceedings of the National Academy of Sciences 108: 8589–8594.
  • Chen, Menggen, and Shuai Zhang. 2020. “Measuring the Regional Non-Observed Economy in China with Nighttime Lights.” International Journal of Emerging Markets, forthcoming.
  • Cheng, Qiang, Fei Du, Xin Wang, and Yutao Wang. 2016. “Seeing is Believing: Analysts’ Corporate Site Visits.” Review of Accounting Studies 21: 1245–1286.
  • Chugh, Lal C., and Joseph W. Meador. 1984. “The Stock Valuation Process: The Analysts’ View.” Financial Analysts Journal 40: 41–48.
  • Coval, Joshua D., and Tobias J. Moskowitz. 1999. “Home Bias at Home: Local Equity Preference in Domestic Portfolios.” The Journal of Finance 54: 2045–2073.
  • Dehaan, E. d, Joshua Madsen, and Joseph D. Piotroski. 2017. “Do Weather-Induced Moods Affect the Processing of Earnings News?” Journal of Accounting Research 55: 509–550.
  • Dhaliwal, Dan S., Suresh Radhakrishnan, Albert Tsang, and Yong George Yang. 2012. “Nonfinancial Disclosure and Analyst Forecast Accuracy: International Evidence on Corporate Social Responsibility Disclosure.” The Accounting Review 87: 723–759.
  • Drake, Michael S., Nicholas M. Guest, and Brady J. Twedt. 2014. “The Media and Mispricing: The Role of the Business Press in the Pricing of Accounting Information.” The Accounting Review 89: 1673–1701.
  • Ebener, Steeve, Christopher Murray, Ajay Tandon, and Christopher C Elvidge. 2005. “From Wealth to Health: Modelling the Distribution of Income Per Capita at the Sub-national Level Using Night-Time Light Imagery.” International Journal of Health Geographics 4: 5–14.
  • Elvidge, C. D., K. E. Baugh, E. A. Kihn, H. W. Kroehl, E. R. Davis, and C. W. Davis. 1997. “Relation between Satellite Observed Visible-Near Infrared Emissions, Population, Economic Activity and Electric Power Consumption.” International Journal of Remote Sensing 18: 1373–1379.
  • Green, T. Clifton, Russell Jame, Stanimir Markov, and Musa Subasi. 2014. “Access to Management and the Informativeness of Analyst Research.” Journal of Financial Economics 114: 239–255.
  • Han, Bing, Dongmin Kong, and Shasha Liu. 2018. “Do Analysts Gain an Informational Advantage by Visiting Listed Companies?” Contemporary Accounting Research 35: 1843–1867.
  • Henderson, J Vernon, Adam Storeygard, and David N Weil. 2012. “Measuring Economic Growth from Outer Space.” American Economic Review 102: 994–1028.
  • Hess, Dieter, and Daniel Kreutzmann. 2010. “Earnings Expectations and Macroeconomic Conditions.”
  • Ho, S. S., A. Y. Li, K. Tam, and F. Zhang. 2015. “CEO Gender, Ethical Leadership, and Accounting Conservatism.” Journal of Business Ethics 127 (2): 351–370.
  • Hu, Jinshuai, Siqi Li, A. G. Taboada, and Feida F. Zhang. 2020. “Corporate Board Reforms Around the World and Stock Price Crash Risk.” Journal of Corporate Finance 62: 101557.
  • Huberman, Gur. 2001. “Familiarity Breeds Investment.” Review of Financial Studies 14: 659–680.
  • Hugon, Artur, Alok Kumar, and An-ping Lin. 2016. “Analysts, Macroeconomic News, and the Benefit of Active In-House Economists.” The Accounting Review 91: 513–534.
  • Hutton, Amy P., Lian Fen Lee, and Susan Z. Shu. 2012. “Do Managers Always Know Better? The Relative Accuracy of Management and Analyst Forecasts.” Journal of Accounting Research 50: 1217–1244.
  • Keloharju, Matti, and Mark Grinblatt. 2001. “How Distance, Language, and Culture Influence Stockholdings and Trades.” The Journal of Finance 56: 1053–1073.
  • Kong, Dongmin, Zhiyang Lin, Yanan Wang, and Junyi Xiang. 2021. “Natural Disasters and Analysts’ Earnings Forecasts.” Journal of Corporate Finance, forthcoming.
  • Kross, William, Byung Ro, and Douglas Schroeder. 1990. “Earnings Expectations: The Analysts’ Information Advantage.” The Accounting Review 65: 461–476.
  • Lang, Mark H., and Russell J. Lundholm. 1996. “Corporate Disclosure Policy and Analyst Behavior.” Accounting Review 71: 467–492.
  • Li, Xiaoxia, Guilong Cai, and Danglun Luo. 2020. “GDP Distortion and tax Avoidance in Local SOEs: Evidence from China.” International Review of Economics and Finance 69: 582–598.
  • Li, Hongbin, and Li An Zhou. 2005. “Political Turnover and Economic Performance: The Incentive Role of Personnel Control in China.” Journal of Public Economics 89: 1743–1762.
  • Lin, Hsiou Wei, and Maureen F. McNichols. 1998. “Underwriting Relationships, Analysts’ Earnings Forecasts and Investment Recommendations.” Journal of Accounting and Economics 25: 101–127.
  • Lyu, Changjiang, Kemin Wang, Frank Zhang, and Xin Zhang. 2018. “GDP Management to Meet or Beat Growth Targets.” Journal of Accounting and Economics 66: 318–338.
  • Malloy, Christopher J. 2005. “The Geography of Equity Analysis.” The Journal of Finance 60: 719–755.
  • Michaely, Roni, and Kent L. Womack. 1999. “Conflict of Interest and the Credibility of Underwriter Analyst Recommendations.” Review of Financial Studies 12: 653–686.
  • Mora, José V. Rodríguez, and Paul Schulstad. 2007. “The Effect of GNP Announcements on Fluctuations of GNP Growth.” European Economic Review 51: 1922–1940.
  • Morck, Randall, Bernard Yeung, and Wayne Yu. 2000. “The Information Content of Stock Markets: Why Do Emerging Markets Have Synchronous Stock Price Movements?” Journal of Financial Economics 58: 215–260.
  • Moyes, Glen D, Brahim Saadouni, Jon Simon, and Patricia A. Williams. 2001. “A Comparison of Factors Affecting UK and US Analyst Forecast Revisions.” The International Journal of Accounting 36: 47–63.
  • Ouyang, Caiyue, Jamie Y. Tong, Jiacai Xiong, and Feida F. Zhang. 2021. “Fraud Commitment in a Smaller World: Evidence from a Natural Experiment.” Working Paper, University of Queensland.
  • Previts, Gary John, Robert J. Bricker, Thomas R. Robinson, and Stephen J. Young. 1994. “A Content Analysis of Sell-Side Financial Analyst Company Reports.” Accounting Horizons 8: 55–70.
  • Rawski, Thomas G. 2001. “What is Happening to China’s GDP Statistics?” China Economic Review 12: 347–354.
  • Rees, Lynn, Nathan Y. Sharp, and Paul A. Wong. 2017. “Working on the Weekend: Do Analysts Strategically Time the Release of Their Recommendation Revisions?” Journal of Corporate Finance 45: 104–121.
  • Smajlbegovic, Esad. 2019. “Regional Economic Activity and Stock Returns.” Journal of Financial and Quantitative Analysis 54: 1051–1082.
  • Soltes, Eugene. 2014. “Private Interaction between Firm Management and Sell-Side Analysts.” Journal of Accounting Research 52: 245–272.
  • Sutton, Paul C., and Robert Costanza. 2002. “Global Estimates of Market and non-Market Values Derived from Nighttime Satellite Imagery, Land Cover, and Ecosystem Service Valuation.” Ecological Economics 41: 509–527.
  • Sutton, Paul C., Christopher D. Elvidge, Ghosh Tilottama, and National Oceanic. 2007. “Estimation of Gross Domestic Product at Sub-National Scales Using Nighttime Satellite Imagery.” International Journal of Ecological Economics & Statistics 8: 5–21.
  • Tong, Jamie, and Feida F. Zhang. 2021. “Do Capital Market Punish Managerial Myopia? Evidence from Mypoic R&D Cuts.” Journal of Financial and Quantitative Analysis, forthcoming.
  • Wallace, Jeremy L. 2016. “Juking the Stats? Authoritarian Information Problems in China.” British Journal of Political Science 46: 11–29.
  • Wu, Jing, Yongheng Deng, Jun Huang, Randall Morck, and Bernard Yeung. 2014. “Incentives and Outcomes: China’s Environmental Policy.” Capitalism and Society 9: 1–41.
  • Xu, Chenggang. 2011. “The Fundamental Institutions of China’s Reforms and Development.” Journal of Economic Literature 49: 1076–1151.
  • Xu, Kangning, Fenglong Chen, and Xiuyan Liu. 2015. “The Truth of China Economic Growth: Evidence from Global Night-Time Light Data.” Economic Research Journal 50: 17–29.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.