Title

The effects of foreign equity ownership on earnings forecasts in China

Document Type

Journal article

Source Publication

Chinese Economy

Publication Date

3-1-2005

Volume

38

Issue

2

First Page

36

Last Page

55

Abstract

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.

DOI

10.1080/10971475.2005.11033521

Print ISSN

10971475

E-ISSN

15580954

Publisher Statement

Copyright © 2005 Taylor & Francis

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Full-text Version

Publisher’s Version

Recommended Citation

Fan, D. K. K., Lui, G., & So, R. W. (2005). The effects of foreign equity ownership on earnings forecasts in China. The Chinese Economy, 38(2), 36-55. doi: 10.1080/10971475.2005.11033521