Scholarlink

<p>We examine the effect of private firm information dissemination on analysts’ forecast accuracy for public firms, utilizing the mandatory adoption of electronic business registers in EU countries as a (plausibly) exogenous shock. Our findings reveal a significant improvement in analysts’ earnings forecast accuracy following the registers’ implementation that enhanced private firms’ information dissemination, indicating positive information spillovers to public firms. This effect strengthens (i) when private firm disclosures are timelier within the context of the focal public firm’s fiscal year and (ii) when the focal public firm has private firm suppliers, customers, or competitors. However, increased transparency of private firms also reduces analysts’ incentives to cover public firms, as investor attention shifts from public to private firms. This countervailing force negatively impacts analyst forecast accuracy, partially offsetting the positive effects from information spillovers.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

Private firm information dissemination and analysts’ public firm forecast accuracy

  • 期刊论文

  • 出版模式：

    开放获取

  • 发表日期：

    2026年6月29日

查看全文
  • Justin Chircop,
  • Shaohua He,
  • Jiancheng Duncan Liu,
  • Guochang Zhang

摘要

We examine the effect of private firm information dissemination on analysts’ forecast accuracy for public firms, utilizing the mandatory adoption of electronic business registers in EU countries as a (plausibly) exogenous shock. Our findings reveal a significant improvement in analysts’ earnings forecast accuracy following the registers’ implementation that enhanced private firms’ information dissemination, indicating positive information spillovers to public firms. This effect strengthens (i) when private firm disclosures are timelier within the context of the focal public firm’s fiscal year and (ii) when the focal public firm has private firm suppliers, customers, or competitors. However, increased transparency of private firms also reduces analysts’ incentives to cover public firms, as investor attention shifts from public to private firms. This countervailing force negatively impacts analyst forecast accuracy, partially offsetting the positive effects from information spillovers.