Robots and analyst forecast precision: Evidence from Chinese manufacturing
Huijie Cui,
Shangkun Liang,
Canyu Xu and
Yu Junli
International Review of Financial Analysis, 2024, vol. 94, issue C
Abstract:
This paper investigates whether industrial robot adoption in manufacturing industries improves subsequent analyst forecast performance. The evidence suggests that the adoption of industrial robots has a positive correlation with analyst forecast precision, reflected as lower analyst forecast bias and forecast dispersion. It is also found that enhancing total operating efficiency and promoting information dissemination are two possible channels through which industrial robot adoption improves analyst forecast precision. Furthermore, cross-sectional analyses show that the positive link is more pronounced in more ex-ante uncertain firms and private firms. Overall, our paper provides comprehensive evidence for the industrial robot spillover effect on corporate activities.
Keywords: Industrial robot; Analyst forecast; Operating efficiency; Information dissemination (search for similar items in EconPapers)
JEL-codes: G24 O30 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (2)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:94:y:2024:i:c:s1057521924001297
DOI: 10.1016/j.irfa.2024.103197
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