<p>In today’s data-intensive environment, model-based data analysis plays a critical role in providing enterprises with quantitative insights to optimize decision-making and manage risks. This study examines the relationship between institutional investor distraction and the quality of accounting information disclosure, focusing on Chinese A-share listed companies from 2010 to 2020. By leveraging Kempf’s formula and methodology, the paper quantifies “distraction” through analyzing extreme industry returns, institutional holdings, and market capitalization. Findings indicate that institutional investor distraction can reduce the quality of disclosed accounting information, a trend more pronounced among firms with high pressure resistance. Further analysis reveals that increased attention from securities analysts and investor research activities can mitigate this negative impact. This research contributes to understanding the role of institutional investors in corporate governance from the perspective of exogenous shocks and demonstrates the application of data-driven analytic in assessing information disclosure quality. Insights from this study offer policy recommendations for enhancing regulatory frameworks on information management and corporate governance.</p>