Impact of equity pledges on analysts earnings forecasts

Xiaoguang Gao, Juncheng Luo and Qiang Zhao

Finance Research Letters, 2025, vol. 71, issue C

Abstract: This study conducts an in-depth analysis of the relationship between the equity pledge phenomenon and analysts’ earnings forecast behavior using China's A-share listed companies from 2017 to 2022 as the research sample. Findings indicate that the existence of equity pledges increases the error range, optimism, and disagreement among analysts when making earnings forecasts. However, for non-state-owned enterprises, companies with a relatively high proportion of institutional shareholders, and those with better transparency, the impact of equity pledges on analysts’ forecasting behavior shows a weakening trend.

Keywords: Equity pledge; Analyst's earnings forecast; Information disclosure (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:71:y:2025:i:c:s1544612324014090

DOI: 10.1016/j.frl.2024.106380

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