Do Non-recurring Gains and Losses Affect Analyst Behavior?

Abstract

Based on a sample of A-share listed companies from 2009 to 2015, this paper studies the non-recurring gains and losses of China's unique indicators. The article finds: (1) the proportion of non-recurring profit and loss of corporate analysts tracking and reporting is relatively small, negatively correlated. (2) Companies with large non-recurring gains and losses, analysts predict more inaccurate, less optimistic deviations, larger forecast ranges. This paper has deepened the understanding of the impact of non-recurring gains and losses on the capital market, enriching the literature on non-recurring gains and losses and analyst behavior, which is of great significance to both theory and practice.