Corporate Participation in ESG Ratings and the Accuracy of Analysts' Surplus Forecasts: Based on the Perspective of Green Finance Policy Implementation
DOI:
https://doi.org/10.62051/x0hs5q83Keywords:
ESG Ratings; Analyst Surplus Forecasts; Green Finance Policies; Surplus Forecast Accuracy.Abstract
The article takes China's A-share listed companies from 2012to 2022 as the research target, using the different-in-difference model, and investigate the impact of ESG rating on the accuracy of analysts' forecast accuracy under China's green finance policies. This study finds that under green finance policies, ESG rating companies significantly have higher analysts' forecast accuracy, which is manifested in the reduction of analysts' forecast error and optimism bias. In terms of the mechanism, ESG-rated companies are more likely followed by security analysts and are willing to provide better quality of information disclosure, and thus have higher analysts’ forecast accuracy. This study also examines firm heterogeneity. Under the green finance policies, the positive impact of ESG rating on the analysts' forecast accuracy is more significant in non-state-owned enterprises and enterprises in ESG-sensitive industries.
Downloads
References
Chen Lulan&Wang Yusheng. Securities Analyst Tracking and Corporate Social Responsibility Information Disclosure: A Study Based on China's Capital Market. Macroeconomic Research 2014 (05), 107-116.
Fang Junxiong. Transparency of Information Disclosure of Listed Companies in China and Securities Analyst Forecasts. Financial Research, 2007324 (06): 136-148.
Li Jinglin, Yang Zhen, Chen Jin, etc. Research on the Mechanism of ESG Promoting Corporate Performance from the Perspective of Corporate Innovation. Science and Technology Management, 2021, 42 (09): 71-89.
Sun Guangguo, Cao Siyu, An Jiapeng. Can ESG performance of enterprises improve the quality of analyst earnings forecasts: empirical evidence from A-share listed companies. Journal of Finance and Economics, 2023 (4): 1-12.
Shi Guifeng, Su Liyong&Qi Weishan. Empirical analysis of factors determining the accuracy of earnings forecasts by financial analysts. Financial Research (05): 2007, 62-71.
Wang Xia, Xu Yi&Chen Lu. Does Corporate Social Responsibility Information Disclosure Help Identify the Quality of Financial Reporting Financial Research, 2014 (05): 133-144.
Wang Linlin, Lian Yonghui, Dong Jie. Research on the Mechanism of ESG Performance's Impact on Corporate Value. Securities Market Introduction, 2022358 (05): 23-34.
Xu Guanghua, Zhuo Yaoyao, Zhang Yimeng, etc. Will ESG information disclosure increase corporate value Financial and Accounting Communication, 2022888 (04): 33-37.
Zhong Jianyi&Chen Fuyong. Implementation of the Shanghai Hong Kong Stock Connect, Analyst Attention and Earnings Forecast Accuracy. Financial and Accounting Newsletter (03): 73-77. Weekly Opening 11111 Countries, Ying Qianwei, Chen Xiaoxian. 2014. Media Attention, Analyst Attention and Earnings Forecast Accuracy. Financial Research, 2023 (02): 139-152.
Wong,W.C.,Batten,J.A.,Mohamed-Arshad,S.B.,Nordin,S.,&Adzis,A.A..Does ESG certification add firm value?. Finance Research Letters,2021,39:101593.
Michael A.Job market signaling. Quarterly Journal of Economics.1973,87:355-374.
Suchman,M.C.Managing Legitimacy: Strategic and Institutional Approaches. The Academy of Management Review, 1995,20 (3).
Dhaliwal D,Radhakrisshnan S,Tsang A,et al.Non-financial disclosure and analyst forecast accuracy: international evidence on corporate social responsibility disclosure. Accounting Review,2012,87(3): 723-759.
Bhushan R.Firm characteristics and analyst following. Journal of Accounting & Economics, 1989,11(2): 255-274.
Coen,A.,A.Desfleurs,J.F.L'Her, and J.M.Suret.Another Look at Factors Explaining Quality of Financial Analysts' Forecasts: Evidence from the Asian Emerging Markets. Journal of Multinational Financial Management, 2005,15(4-5): 414-434
Lang M.&Lundholm R.Corporate disclosure policy and analyst behavior, The Accounting Review, 1996,71(4): 467 -492.
Downloads
Published
Conference Proceedings Volume
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
How to Cite
