Institutional ownership and analysts’ earnings forecasts

Abstract

This paper selects the data of China's A-share market from 2011 to 2022 to explore the impact of institutional shareholding on analysts’ earnings forecasts. The findings indicate the following: institutional shareholding enhances analysts’ earnings forecast accuracy and reduces analysts’ forecast optimism bias; institutions with small geodesic pits will be more helpful for analysts to improve the quality of earnings forecasts; and institutional shareholding improves the quality of analysts’ earnings forecasts by promoting the quality of firms’ information disclosure.