 Mandatory R&D disclosure and analyst forecast Accuracy: Evidence from an emerging marketBaohua Liu, Dan Huang, Tao Chen and Kam C. Chan Journal of Contemporary Accounting and Economics, 2023, vol. 19, issue 3 Abstract: Exploiting the mandatory R&D disclosure policy in China, we capitalize on a difference-in-differences framework to examine whether mandatory R&D disclosure matters to analyst forecast accuracy in a sample of technology intensive firms. We find that, after mandatory R&D disclosure, forecast errors decrease significantly more for treatment firms (i.e., firms that chose not to disclose R&D investments before the mandate policy) relative to control firms (i.e., firms that did voluntary disclosure of R&D investments before the mandate policy). Further, we show that the impact of mandatory R&D disclosure is more pronounced when there is high information asymmetry within the firm or an industry as well as when analysts are working under unfavorable conditions. Overall, our findings demonstrate the positive effect of mandatory R&D disclosure on reducing information asymmetry and shed light on the importance of R&D disclosure reform in developing markets. Keywords: Mandatory R&D Disclosure; Analyst Forecasts; China (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jocaae:v:19:y:2023:i:3:s1815566923000164 DOI: 10.1016/j.jcae.2023.100366 Access Statistics for this article Journal of Contemporary Accounting and Economics is currently edited by Agnes C.S. Cheng, P. Clarkson, F.A. Gul, Zoltan Matolcsy, Dan Simunic and Ben Srinidhi More articles in Journal of Contemporary Accounting and Economics from Elsevier |
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