Targeted poverty alleviation disclosure and analyst forecast accuracy: Evidence from a quasi-natural experiment

Abstract

Using the Targeted Poverty Alleviation (TPA) disclosure policy in China as a quasi-natural experiment, this paper analyzes the impact of firm TPA disclosure on analyst forecast accuracy based on a staggered difference-in-differences model. The results show a significant increase in the accuracy of analysts’ forecasts after firms’ disclosure of TPA information, and this effect is more pronounced for firms with greater information processing cost and firms with fewer covering analysts. Our study provides empirical evidence for regulators concerned with the information environment of capital market.