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Institutional ownership and analysts’ earnings forecasts

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  • Liu, Wenjun
  • Chen, Aoyun

Abstract

This paper selects the data of China's A-share market from 2011 to 2022 to explore the impact of institutional shareholding on analysts’ earnings forecasts. The findings indicate the following: institutional shareholding enhances analysts’ earnings forecast accuracy and reduces analysts’ forecast optimism bias; institutions with small geodesic pits will be more helpful for analysts to improve the quality of earnings forecasts; and institutional shareholding improves the quality of analysts’ earnings forecasts by promoting the quality of firms’ information disclosure.

Suggested Citation

  • Liu, Wenjun & Chen, Aoyun, 2024. "Institutional ownership and analysts’ earnings forecasts," Finance Research Letters, Elsevier, vol. 61(C).
    • Handle: RePEc:eee:finlet:v:61:y:2024:i:c:s1544612324000175
    DOI: 10.1016/j.frl.2024.104987
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    References listed on IDEAS

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