Work

Making better analysts’ forecast – an investigation of artificial intelligence applications in corporations

Year: 2025

Type: article

Abstract: We explore the impact of artificial intelligence (AI) applications in corporations on analysts’ earnings forecast errors. We construct firm-level AI application data using text mining methods with Chinese A-share listed companies from 2011 to 2023. Our findings reveal that AI applications in corporations significantly reduce analysts’ earnings forecasting errors. Additionally, AI applications to reduce analysts’ earnings forecast errors are achieved through improving the accounting information quality of corporations and attracting more analysts to field research activities.

Source: Applied Economics Letters

DOI: 10.1080/13504851.2025.2472036

Authors: Xiaotong Cai, Peiyang Lin, Lei Chen, Wenhua Wang

Institutions: Fudan University, Guangdong University of Finance, Vrije Universiteit Amsterdam, Yunnan University of Finance And Economics

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: green

Funders: Guangzhou Office of Philosophy and Social Science, China Postdoctoral Science Foundation, Humanities and Social Science Fund of Ministry of Education of China

OpenAlex ID: W4407974801

FWCI: 2.7

Cites: 12

Cited by: 1

Related to: 10