Spillover Effects of the Registration-Based IPO Reform on Analyst Earnings Forecast Quality

Qinyang Li, Lu Huang, Wentao Cao and Yinying Chen

Emerging Markets Finance and Trade, 2025, vol. 61, issue 10, 2895-2915

Abstract: This study examines the impact of China’s registration-based IPO reform on analyst earnings forecast quality. Using the sample of firms listed on China’s A-share market from 2017 to 2022, we find that after the registration-based IPO reform, the earnings forecast bias and dispersion of analysts who follow the peer non-registered listed firms decrease significantly. Additionally, the analyst earnings forecast quality of non-registered listed firms improves with the degree of risk information, innovative information, and forward-looking information disclosed in the prospectuses of peer-registered listed firms. Mechanism analyses reveal that the reform’s spillover effect stems from improved information disclosure quality among peer non-registered firms. The spillover effect is more pronounced for state-owned enterprises, firms with substantial intangible assets, those in highly competitive sectors, and those located in regions with advanced marketization.

Date: 2025
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DOI: 10.1080/1540496X.2025.2456542

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