Private Firm Information Dissemination and Analysts’ Public Firm Forecast Accuracy
Prof. Duncan Jiancheng LIU
Assistant Professor in Accounting
FBA, UM
Date: 2 December 2024 (Monday)
Time: 13:00 to 14:00
Venue: FBA Lobby
Abstract
Using the mandated adoption of electronic business registers (EBR) in the European Union as a plausibly exogenous shock, we study the impact of private firm information dissemination on analysts’ public firm forecast accuracy. We find an improvement in analysts’ public firm forecast accuracy post EBR, with the effect being more pronounced in industries where private firms collectively disclose more information, suggesting positive information spillovers. At the same time, however, analysts display diminished incentives to cover public firms post EBR, which is attributable to the crowding out of public firms in financial markets as private firms become more informationally transparent, thus negatively affecting analyst forecast accuracy. This analyst incentive effect significantly attenuates the positive information effect for public firms most susceptible to being crowded out.
Speaker
Dr. Duncan Liu is an Assistant Professor in Accounting at the Faculty of Business Administration, University of Macau. His research interest centers around unlisted private firms, focusing on their financial disclosure, ESG and voluntary audit. Dr. Liu’s work has been published in top accounting journals, such as Journal of Accounting Research. His research has also been accepted by leading international conferences hosted by American Accounting Association (AAA), Canadian Academic Accounting Association (CAAA), and European Accounting Association (EAA), among others.
All are welcome!
