CAN ESG PERFORMANCE IMPROVE THE ANALYST FORECAST ACCURACY?

Pengwei He; Peng Zhu; Jiaqi Liu

doi:10.51200/mjbe.v12i1.6593

Authors

Pengwei He
Peng Zhu
Jiaqi Liu

DOI:

https://doi.org/10.51200/mjbe.v12i1.6593

Keywords:

ESG performance, information disclosure, information asymmetry, analyst forecast, sustainable development

Abstract

ESG level has become one of the important criteria for evaluating the sustainable development ability of enterprises in the new era. Based on the perspective of analysts, this paper empirically examines the influence of ESG performance on analysts’ forecast accuracy. The study found that the better the ESG performance, the higher the accuracy of analysts’ forecasts. Mechanism testing finds that good ESG performance can improve information transparency and reduce earnings volatility. The heterogeneity analysis shows that ESG performance has a more significant effect on the accuracy of analysts’ forecasts in the samples of corporate governance level and non-state-owned enterprises. The research conclusions reveal the information transmission effect of ESG performance in the capital market and provide policy suggestions for standardizing the ESG information disclosure system.

Author Biographies

Pengwei He

Business School, University of Shanghai for Science and Technology,
Shanghai 200093, China

Peng Zhu

School of Accounting, Hunan University of Technology and Business,
Changsha, 410001, China

Jiaqi Liu

School of Accounting, Hunan University of Technology and Business,
Changsha, 410001, China

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