Dehong Liu, Tiantian Lin, Carl R. Chen, Wenjun Feng
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引用次数: 0
Abstract
This study investigates the impact of air pollution on analyst information production using corporate earnings announcements as experimental events. By analyzing a dataset of 47,406 firm-quarter-analyst observations from 2014 to 2020, we find that air pollution between firms’ earnings announcements and analyst forecasts decreases the firm-specific information in analyst reports, as reflected by higher stock price synchronicity after analyst reports. We identify three manifestations of the detrimental effect of air pollution on analyst information supply: shorter reports, reduced forecast accuracy, and less precision for EPS forecasts. The effect is heterogeneously observed across groups, showing a mitigated impact when analyst teams are larger, workloads are lower, analysts operate in non-heating areas or non-heating seasons, or firms exhibit higher levels of information transparency.
期刊介绍：
Review of Quantitative Finance and Accounting deals with research involving the interaction of finance with accounting, economics, and quantitative methods, focused on finance and accounting. The papers published present useful theoretical and methodological results with the support of interesting empirical applications. Purely theoretical and methodological research with the potential for important applications is also published. Besides the traditional high-quality theoretical and empirical research in finance, the journal also publishes papers dealing with interdisciplinary topics.
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