Pub Date : 2025-12-31DOI: 10.1016/j.jcae.2025.100536
Kun Su, Yixuan Fan, Jiahao Yan
This study examines the relationship between local happiness and firm total factor productivity at the firm level. We find that local happiness is positively associated with firms’ total factor productivity. Our mechanism analysis indicates that local happiness improves firms’ total factor productivity by attracting human and capital resources, promoting labor productivity, and stimulating innovation. We also find that the positive effect of local happiness on total factor productivity is more pronounced in firms with low human capital, firms located in regions with advanced digital infrastructure, and in non-state-owned firms. Our research offers recommendations for governments on how to prioritize people’s well-being and achieve economic objectives.
{"title":"With happy we are more productive: Evidence from total factor productivity","authors":"Kun Su, Yixuan Fan, Jiahao Yan","doi":"10.1016/j.jcae.2025.100536","DOIUrl":"10.1016/j.jcae.2025.100536","url":null,"abstract":"<div><div>This study examines the relationship between local happiness and firm total factor productivity at the firm level. We find that local happiness is positively associated with firms’ total factor productivity. Our mechanism analysis indicates that local happiness improves firms’ total factor productivity by attracting human and capital resources, promoting labor productivity, and stimulating innovation. We also find that the positive effect of local happiness on total factor productivity is more pronounced in firms with low human capital, firms located in regions with advanced digital infrastructure, and in non-state-owned firms. Our research offers recommendations for governments on how to prioritize people’s well-being and achieve economic objectives.</div></div>","PeriodicalId":46693,"journal":{"name":"Journal of Contemporary Accounting & Economics","volume":"22 1","pages":"Article 100536"},"PeriodicalIF":2.9,"publicationDate":"2025-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145883352","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-12-28DOI: 10.1016/j.jcae.2025.100535
Bobae Choi , Doowon Lee , Kyoungwon Mo
This study examines whether conflicts of interest induced by group affiliation between asset management companies (AMCs) and brokerage firms compromise the independence of the affiliated analysts’ forecasts. That is, we investigate whether affiliated analysts treat stocks held by mutual funds in the same chaebol group differently from other stocks. Our main results indicate that analyst forecasts are selectively optimistic about the stocks that are of the greatest interest to affiliated AMCs. Specifically, analysts produce more accurate forecasts for stocks held by affiliated AMCs in general, while their recommendations and forecasts become more optimistic and less accurate as the amount of funding invested in such stocks increases within a fund held by affiliated fund managers. Selective optimism is also found when the asset management fees are high and when those stocks are newly added to the funds held by affiliated fund managers.
{"title":"Selective optimism of analysts affiliated with mutual funds","authors":"Bobae Choi , Doowon Lee , Kyoungwon Mo","doi":"10.1016/j.jcae.2025.100535","DOIUrl":"10.1016/j.jcae.2025.100535","url":null,"abstract":"<div><div>This study examines whether conflicts of interest induced by group affiliation between asset management companies (AMCs) and brokerage firms compromise the independence of the affiliated analysts’ forecasts. That is, we investigate whether affiliated analysts treat stocks held by mutual funds in the same chaebol group differently from other stocks. Our main results indicate that analyst forecasts are selectively optimistic about the stocks that are of the greatest interest to affiliated AMCs. Specifically, analysts produce more accurate forecasts for stocks held by affiliated AMCs in general, while their recommendations and forecasts become more optimistic and less accurate as the amount of funding invested in such stocks increases within a fund held by affiliated fund managers. Selective optimism is also found when the asset management fees are high and when those stocks are newly added to the funds held by affiliated fund managers.</div></div>","PeriodicalId":46693,"journal":{"name":"Journal of Contemporary Accounting & Economics","volume":"22 1","pages":"Article 100535"},"PeriodicalIF":2.9,"publicationDate":"2025-12-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145924407","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-12-28DOI: 10.1016/j.jcae.2025.100534
Chao Liang , Bai Liu
Technology diffusion has facilitated long-term socio-economic progress. Therefore, most countries are striving to offer an environment conducive to innovation, including the establishment of appropriate intellectual property rights (IPR). However, the role of IPR in promoting technology diffusion remains controversial. Specifically, patents promote technology diffusion by protecting inventions and disclosing knowledge to the public, while triggering exclusive rights that may hinder technology diffusion. Based on signal theory, the existing research perspective is extended from “point-to-point” (inventor-imitator) to “point-to-side” (inventor-potential inventor) to investigate the technology diffusion regarding peer firms of defendant in patent litigation. The results show stronger technology diffusion in peer firms of defendant after patent litigation. Two mechanisms of litigation signals are demonstrated through grouping tests: legitimacy and competitiveness. This study contributes to resolving the contradictory literature on IPR and technology diffusion, while also complementing studies on IPR in developing countries.
{"title":"Enabler or barrier: Impact of patent protection on technology diffusion in China","authors":"Chao Liang , Bai Liu","doi":"10.1016/j.jcae.2025.100534","DOIUrl":"10.1016/j.jcae.2025.100534","url":null,"abstract":"<div><div>Technology diffusion has facilitated long-term socio-economic progress. Therefore, most countries are striving to offer an environment conducive to innovation, including the establishment of appropriate intellectual property rights (IPR). However, the role of IPR in promoting technology diffusion remains controversial. Specifically, patents promote technology diffusion by protecting inventions and disclosing knowledge to the public, while triggering exclusive rights that may hinder technology diffusion. Based on signal theory, the existing research perspective is extended from “point-to-point” (inventor-imitator) to “point-to-side” (inventor-potential inventor) to investigate the technology diffusion regarding peer firms of defendant in patent litigation. The results show stronger technology diffusion in peer firms of defendant after patent litigation. Two mechanisms of litigation signals are demonstrated through grouping tests: legitimacy and competitiveness. This study contributes to resolving the contradictory literature on IPR and technology diffusion, while also complementing studies on IPR in developing countries.</div></div>","PeriodicalId":46693,"journal":{"name":"Journal of Contemporary Accounting & Economics","volume":"22 1","pages":"Article 100534"},"PeriodicalIF":2.9,"publicationDate":"2025-12-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145883351","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-12-18DOI: 10.1016/j.jcae.2025.100532
Ting Xu , Weimin Gao , Tao Zhang
This study exploits the phased implementation of China’s registration-based IPO reform as a natural experiment to investigate the impact of regulatory enforcement on the conflicts of interest faced by underwriter-affiliated analysts. We find that the transition from an approval-based system to a registration-based system significantly mitigates the incentives for affiliated analysts to issue optimistically biased recommendations. This result remains robust across a battery of sensitivity analyses. Mechanism tests indicate that the reform operates by enhancing the objectivity and relevance of issuer disclosures, thereby increasing the detectability of biased recommendation. Cross-sectional tests show that this disciplining effect is more pronounced when analysts face greater pressure from buy-side clients and high investor sentiment. Furthermore, we document stronger market reactions to affiliated analysts’ recommendations post-reform, suggesting a restoration of investor trust. These findings offer novel insights into the role of public enforcement and disclosure quality in disciplining financial intermediaries within emerging capital markets.
{"title":"The impact of public enforcement on interest conflicts of affiliated analyst: evidence from regulatory reforms in China’s IPO market","authors":"Ting Xu , Weimin Gao , Tao Zhang","doi":"10.1016/j.jcae.2025.100532","DOIUrl":"10.1016/j.jcae.2025.100532","url":null,"abstract":"<div><div>This study exploits the phased implementation of China’s registration-based IPO reform as a natural experiment to investigate the impact of regulatory enforcement on the conflicts of interest faced by underwriter-affiliated analysts. We find that the transition from an approval-based system to a registration-based system significantly mitigates the incentives for affiliated analysts to issue optimistically biased recommendations. This result remains robust across a battery of sensitivity analyses. Mechanism tests indicate that the reform operates by enhancing the objectivity and relevance of issuer disclosures, thereby increasing the detectability of biased recommendation. Cross-sectional tests show that this disciplining effect is more pronounced when analysts face greater pressure from buy-side clients and high investor sentiment. Furthermore, we document stronger market reactions to affiliated analysts’ recommendations post-reform, suggesting a restoration of investor trust. These findings offer novel insights into the role of public enforcement and disclosure quality in disciplining financial intermediaries within emerging capital markets.</div></div>","PeriodicalId":46693,"journal":{"name":"Journal of Contemporary Accounting & Economics","volume":"22 1","pages":"Article 100532"},"PeriodicalIF":2.9,"publicationDate":"2025-12-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145839199","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Debt financing is crucial for firms, particularly in developing countries like China, where the stock market is underdeveloped. Reducing the debt financing costs of enterprises through institutional design is crucial for enterprise development. This paper examines whether the Chinese judicial independence reform, initiated in 2014 and characterized by centralizing financial and personnel management from the city level to the provincial level, can reduce the firm’s debt financing cost. We employ data from A-share listed firms from 2011 to 2022 and find that the judicial independence reform significantly decreases the firm’s debt financing costs. The mechanisms include an improved financial environment, increased accounting conservatism, and decreased default risk. This effect is more pronounced for POEs, firms without political connections, and firms in better legal environments. Overall, our findings demonstrate that strengthening judicial independence is a vital institutional foundation for reducing corporate financing frictions and supporting firm growth.
{"title":"The impact of judicial independence on the corporate debt financing cost − Empirical evidence from China","authors":"Yufei Zhang , Yijun Yu , Yimeng Zhang , Tengjiao He","doi":"10.1016/j.jcae.2025.100533","DOIUrl":"10.1016/j.jcae.2025.100533","url":null,"abstract":"<div><div>Debt financing is crucial for firms, particularly in developing countries like China, where the stock market is underdeveloped. Reducing the debt financing costs of enterprises through institutional design is crucial for enterprise development. This paper examines whether the Chinese judicial independence reform, initiated in 2014 and characterized by centralizing financial and personnel management from the city level to the provincial level, can reduce the firm’s debt financing cost. We employ data from A-share listed firms from 2011 to 2022 and find that the judicial independence reform significantly decreases the firm’s debt financing costs. The mechanisms include an improved financial environment, increased accounting conservatism, and decreased default risk. This effect is more pronounced for POEs, firms without political connections, and firms in better legal environments. Overall, our findings demonstrate that strengthening judicial independence is a vital institutional foundation for reducing corporate financing frictions and supporting firm growth.</div></div>","PeriodicalId":46693,"journal":{"name":"Journal of Contemporary Accounting & Economics","volume":"22 1","pages":"Article 100533"},"PeriodicalIF":2.9,"publicationDate":"2025-12-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145796679","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-12-08DOI: 10.1016/j.jcae.2025.100531
Zaher Zantout , Asm Sohel Azad , Kimberly Gleason , Vicente Bicudo de Castro , Deborah Smith
We examine knowledge progression in academic accounting over the past three decades using novel measures of the scientific impact of new research. Among eight reputable accounting journals, we find that the relative scientific impact of new research published in The Accounting Review, Journal of Accounting Research, and Journal of Accounting and Economics declined significantly since the early 2000 s, and new research in the other reputable journals did not counterbalance these major declines. This phenomenon occurred despite the concurrent proliferation of accounting research over this time period. Evidently, the concerns expressed by many prolific researchers have materialized. There is a real need for greater and more urgent introspection by university administrators, doctoral program directors, and journal editors regarding the reasons the high pace of scientific progress achieved in the early part of our study period slowed down significantly by its end.
{"title":"Has scientific progress in accounting slowed down?","authors":"Zaher Zantout , Asm Sohel Azad , Kimberly Gleason , Vicente Bicudo de Castro , Deborah Smith","doi":"10.1016/j.jcae.2025.100531","DOIUrl":"10.1016/j.jcae.2025.100531","url":null,"abstract":"<div><div>We examine knowledge progression in academic accounting over the past three decades using novel measures of the scientific impact of new research. Among eight reputable accounting journals, we find that the relative scientific impact of new research published in <em>The Accounting Review</em>, <em>Journal of Accounting Research</em>, and <em>Journal of Accounting and Economics</em> declined significantly since the early 2000 s, and new research in the other reputable journals did not counterbalance these major declines. This phenomenon occurred despite the concurrent proliferation of accounting research over this time period. Evidently, the concerns expressed by many prolific researchers have materialized. There is a real need for greater and more urgent introspection by university administrators, doctoral program directors, and journal editors regarding the reasons the high pace of scientific progress achieved in the early part of our study period slowed down significantly by its end.</div></div>","PeriodicalId":46693,"journal":{"name":"Journal of Contemporary Accounting & Economics","volume":"22 1","pages":"Article 100531"},"PeriodicalIF":2.9,"publicationDate":"2025-12-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145736641","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-12-01DOI: 10.1016/j.jcae.2025.100530
Shuai Wang , Ziyao San , Ling Zhou , Minna Yu
In this study, we investigate whether and how risk disclosure in peer firms’ management discussion and analysis (MD&A) influences analyst earnings forecast accuracy. We find that peer MD&A risk disclosure significantly improves forecast accuracy, demonstrating a positive spillover effect. Moreover, the impact of peer MD&A risk disclosure on analysts’ forecast accuracy strengthens with the comparability and reliability of peer firms’ information, while weakens with the disclosure quality of the focal firm. Finally, peer MD&A risk disclosure also reduces stock price crash risk, providing further evidence that it improves information environment of the focal firm.
{"title":"Peer MD&A risk disclosure and analysts’ earnings forecast accuracy: evidence from China","authors":"Shuai Wang , Ziyao San , Ling Zhou , Minna Yu","doi":"10.1016/j.jcae.2025.100530","DOIUrl":"10.1016/j.jcae.2025.100530","url":null,"abstract":"<div><div>In this study, we investigate whether and how risk disclosure in peer firms’ management discussion and analysis (MD&A) influences analyst earnings forecast accuracy. We find that peer MD&A risk disclosure significantly improves forecast accuracy, demonstrating a positive spillover effect. Moreover, the impact of peer MD&A risk disclosure on analysts’ forecast accuracy strengthens with the comparability and reliability of peer firms’ information, while weakens with the disclosure quality of the focal firm. Finally, peer MD&A risk disclosure also reduces stock price crash risk, providing further evidence that it improves information environment of the focal firm.</div></div>","PeriodicalId":46693,"journal":{"name":"Journal of Contemporary Accounting & Economics","volume":"22 1","pages":"Article 100530"},"PeriodicalIF":2.9,"publicationDate":"2025-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145796662","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-26DOI: 10.1016/j.jcae.2025.100529
Akhilesh Bajaj, Lori N.K. Leonard, Li Sun
Accounting Standards Codification 820 (ASC 820), which addresses fair value measurement, mandates that companies categorize their fair value inputs, both assets and liabilities, into three distinct levels. Level 1 represents inputs derived from highly observable market prices, whereas Level 3 is based on data that is minimally observable. Examining a sample from 2008 to 2020, consisting of more than 30,000 firm-year observations, we identify a significant positive relation between asset redeployability and the use of Level 1 inputs, suggesting that firms with assets that can be easily repurposed tend to prefer these transparent valuation methods. On the other hand, we observe a significant negative relation between asset redeployability and the use of Level 3 inputs, implying that firms with flexible assets are less likely to depend on subjective or obscure valuation techniques. These results emphasize that businesses with more redeployable assets favor market-driven and objective inputs.
{"title":"Asset redeployability and fair value accounting","authors":"Akhilesh Bajaj, Lori N.K. Leonard, Li Sun","doi":"10.1016/j.jcae.2025.100529","DOIUrl":"10.1016/j.jcae.2025.100529","url":null,"abstract":"<div><div>Accounting Standards Codification 820 (ASC 820), which addresses fair value measurement, mandates that companies categorize their fair value inputs, both assets and liabilities, into three distinct levels. Level 1 represents inputs derived from highly observable market prices, whereas Level 3 is based on data that is minimally observable. Examining a sample from 2008 to 2020, consisting of more than 30,000 firm-year observations, we identify a significant positive relation between asset redeployability and the use of Level 1 inputs, suggesting that firms with assets that can be easily repurposed tend to prefer these transparent valuation methods. On the other hand, we observe a significant negative relation between asset redeployability and the use of Level 3 inputs, implying that firms with flexible assets are less likely to depend on subjective or obscure valuation techniques. These results emphasize that businesses with more redeployable assets favor market-driven and objective inputs.</div></div>","PeriodicalId":46693,"journal":{"name":"Journal of Contemporary Accounting & Economics","volume":"22 1","pages":"Article 100529"},"PeriodicalIF":2.9,"publicationDate":"2025-11-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145690964","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-20DOI: 10.1016/j.jcae.2025.100526
Shangqun Liu , Qian Li
We examine the impact of releasing alternative data on firm-level tax avoidance. By using the public release of firms’ online sales data in a prominent Chinese financial database as an exogenous shock, we find that corporate tax avoidance significantly decreases with the disclosure of such data. The transmission mechanism reveals that firms covered by online sales data exhibit less intertemporal income shifting and fewer abnormal related-party transactions. Further analyses show that the negative relation between online sales disclosure and corporate tax avoidance is more pronounced for firms with greater tax-planning capacity, higher market competition intensity, a larger proportion of online sales relative to revenue, and for non-state-owned enterprises. These insights provide novel avenues for identifying and mitigating managerial incentives and capabilities to engage in tax avoidance.
{"title":"Alternative data and corporate tax avoidance: Evidence from online sales disclosure in China","authors":"Shangqun Liu , Qian Li","doi":"10.1016/j.jcae.2025.100526","DOIUrl":"10.1016/j.jcae.2025.100526","url":null,"abstract":"<div><div>We examine the impact of releasing alternative data on firm-level tax avoidance. By using the public release of firms’ online sales data in a prominent Chinese financial database as an exogenous shock, we find that corporate tax avoidance significantly decreases with the disclosure of such data. The transmission mechanism reveals that firms covered by online sales data exhibit less intertemporal income shifting and fewer abnormal related-party transactions. Further analyses show that the negative relation between online sales disclosure and corporate tax avoidance is more pronounced for firms with greater tax-planning capacity, higher market competition intensity, a larger proportion of online sales relative to revenue, and for non-state-owned enterprises. These insights provide novel avenues for identifying and mitigating managerial incentives and capabilities to engage in tax avoidance.</div></div>","PeriodicalId":46693,"journal":{"name":"Journal of Contemporary Accounting & Economics","volume":"22 1","pages":"Article 100526"},"PeriodicalIF":2.9,"publicationDate":"2025-11-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145624488","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-11-20DOI: 10.1016/j.jcae.2025.100524
Jaehee Jang, Xiaoying Wu
After a decade of research on the information content of firms’ financial disclosures, do analysts actually use this information? This study investigates whether analysts incorporate information from the Management Discussion and Analysis (MD&A) sections of annual reports into their earnings forecasts. We also explore the effectiveness of Large Language Models (LLMs) for non-English text sentiment analysis, particularly where a traditional dictionary approach is impossible. We demonstrate that LLM-extracted sentiment is robust and mitigates concerns about look-ahead bias inherent in their training data. Analyzing MD&A sections from South Korean firms, we find that positive sentiment is negatively associated with analyst earnings forecast errors, indicating that analysts do incorporate it into their forecasts. However, negative sentiment is positively associated with forecast errors, suggesting incomplete analyst response. Leveraging LLMs for textual sentiment analysis, our findings suggest that analysts partially, but not fully, utilize the textual sentiment of MD&A sections in their earnings forecasts.
{"title":"Non-English textual analysis with large language models: Analysts’ use of MD&A sentiment in earnings forecasting","authors":"Jaehee Jang, Xiaoying Wu","doi":"10.1016/j.jcae.2025.100524","DOIUrl":"10.1016/j.jcae.2025.100524","url":null,"abstract":"<div><div>After a decade of research on the information content of firms’ financial disclosures, do analysts actually use this information? This study investigates whether analysts incorporate information from the Management Discussion and Analysis (MD&A) sections of annual reports into their earnings forecasts. We also explore the effectiveness of Large Language Models (LLMs) for non-English text sentiment analysis, particularly where a traditional dictionary approach is impossible. We demonstrate that LLM-extracted sentiment is robust and mitigates concerns about look-ahead bias inherent in their training data. Analyzing MD&A sections from South Korean firms, we find that positive sentiment is negatively associated with analyst earnings forecast errors, indicating that analysts do incorporate it into their forecasts. However, negative sentiment is positively associated with forecast errors, suggesting incomplete analyst response. Leveraging LLMs for textual sentiment analysis, our findings suggest that analysts partially, but not fully, utilize the textual sentiment of MD&A sections in their earnings forecasts.</div></div>","PeriodicalId":46693,"journal":{"name":"Journal of Contemporary Accounting & Economics","volume":"22 1","pages":"Article 100524"},"PeriodicalIF":2.9,"publicationDate":"2025-11-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145690963","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
扫码关注我们
求助内容：
应助结果提醒方式：
京公网安备 11010802042870号