The effects of foreign equity ownership on earnings forecasts in China

Citation data:

Chinese Economy, ISSN: 1097-1475, Vol: 38, Issue: 2, Page: 36-55

Publication Year:
2005
Usage 15
Abstract Views 15
Repository URL:
http://commons.ln.edu.hk/sw_master/116, https://works.bepress.com/gladie/2
DOI:
10.1080/10971475.2005.11033521
Author(s):
FAN, Dennis K. K., LUI, Man Ching, Gladie, SO, Raymond W.
article description
In this article, the accuracy of analysts' earnings forecasts in China is studied. Chinese-listed firms with foreign ownership need to report their financial statements in accordance with both Chinese and international accounting standards. This reporting environment offers a good testing ground for the hypothesis that forecasting error is an inverse function of the availability of relevant information. Empirical evidence indicates that firms with foreign ownership tend to have lower forecasting errors. This result demonstrates the value and positive influence of foreign investment in China.

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