Do voluntary disclosures of product and business expansion plans impact analyst coverage and forecasts?

He, G.; Marginson, D.; Dai, X.

Abstract

We investigate whether voluntary disclosures of product and business expansion plans affect analyst coverage and forecasts. We find that the level of analyst coverage is positively associated with the incidence of disclosures of product and business expansion plans. We also find that product and business expansion disclosures increase the informativeness of analyst earnings forecasts. We find no evidence that product and business expansion disclosures increase analyst forecast errors. Overall, our study contributes to understanding the role of product and business expansion disclosures in analyst forecast behaviour.

Citation

He, G., Marginson, D., & Dai, X. (2019). Do voluntary disclosures of product and business expansion plans impact analyst coverage and forecasts?. Accounting and Business Research, 49(7), 785-817. https://doi.org/10.1080/00014788.2018.1559717

• Journal Article Type: Article
• Acceptance Date: Oct 27, 2018
• Online Publication Date: Jan 22, 2019
• Publication Date: 2019
• Deposit Date: Oct 27, 2018
• Publicly Available Date: Jul 21, 2020
• Journal: Accounting and Business Research
• Print ISSN: 0001-4788
• Electronic ISSN: 2159-4260
• Publisher: Taylor and Francis Group
• Peer Reviewed: Peer Reviewed
• Volume: 49
• Issue: 7
• Pages: 785-817
• DOI: https://doi.org/10.1080/00014788.2018.1559717
• Public URL: https://durham-repository.worktribe.com/output/1314661