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Language Barriers, Corporate Site Visit, and Analyst Forecast Accuracy
Lewis H.K. Tam1; Shaohua Tian2
2023-07-28
Source PublicationQuarterly Review of Economics and Finance
ABS Journal Level2
ISSN1062-9769
Volume91Pages:68 - 83
Abstract

This study examines the impact of language barriers on financial analysts’ decisions to perform corporate site visits and the extent to which corporate site visits help analysts overcome language barriers to improve earnings forecast accuracy. Using a sample of analysts’ visits to listed firms on the Shenzhen Stock Exchange, we find that analysts are more likely to visit firms headquartered in areas where local dialects are largely different from Standard Mandarin. Moreover, corporate site visits increase analysts’ forecast accuracy more for those firms. Altogether, the findings suggest that language barriers create difficulties for analysts in obtaining information via verbal communication, and corporate site visits help analysts reduce the communication noise.

KeywordFinancial Analysts Forecast Accuracy Linguistic Distance Corporate Site Visit
DOI10.1016/j.qref.2023.07.010
URLView the original
Indexed BySSCI
Language英語English
WOS Research AreaBusiness & Economics
WOS SubjectEconomics
WOS IDWOS:001053417900001
PublisherELSEVIER SCIENCE INC, STE 800, 230 PARK AVE, NEW YORK, NY 10169
Scopus ID2-s2.0-85166915605
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Citation statistics
Document TypeJournal article
CollectionDEPARTMENT OF FINANCE AND BUSINESS ECONOMICS
Corresponding AuthorShaohua Tian
Affiliation1.Faculty of Business Administration, University of Macau
2.Macau University of Science and Technology
First Author AffilicationFaculty of Business Administration
Corresponding Author AffilicationUniversity of Macau
Recommended Citation
GB/T 7714
Lewis H.K. Tam,Shaohua Tian. Language Barriers, Corporate Site Visit, and Analyst Forecast Accuracy[J]. Quarterly Review of Economics and Finance, 2023, 91, 68 - 83.
APA Lewis H.K. Tam., & Shaohua Tian (2023). Language Barriers, Corporate Site Visit, and Analyst Forecast Accuracy. Quarterly Review of Economics and Finance, 91, 68 - 83.
MLA Lewis H.K. Tam,et al."Language Barriers, Corporate Site Visit, and Analyst Forecast Accuracy".Quarterly Review of Economics and Finance 91(2023):68 - 83.
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