Workshop’s Topic: We investigate the impact of China’s selective introduction of Industry Information Disclosure Guidelines (IIDGs) as an exogenous shock on analyst forecasts for unregulated peer firms. Using a staggered difference-in-differences approach, we find that IDG implementation improves analyst forecast accuracy for unregulated firms within the same industry. This improvement is driven by three key channels: increased information accessibility (information acquisition channel), heightened analyst effort due to competition (analyst competition channel), and reduced strategic behavior by analysts (strategic-analyst channel). The effect is stronger in industries with initially low information quality and is associated with reduced forecast divergence, enhanced content in analyst reports, and improved report readability and informativeness. Overall, our findings highlight the role of analysts in amplifying the positive externalities of partial mandated disclosure regulation.

Time and Location: 13:30 PM (GMT+8), Room A423 (School of Management)

Language: Bilingual (Chinese and English)