Author(s)

Mengying Mao ¹

Affiliation(s)

¹ Shanghai University, Shanghai, China

Corresponding Author

Mengying Mao

ABSTRACT

Based on the institutional background of high-quality economic development and supply-side structural reform, this paper mainly examines the impact of deleveraging strategy on analysts' earnings forecast optimism. The study found that, compared with the "empowerment" strategy, the adoption of "debt reduction" strategy to deleverage significantly increased analysts' earnings forecast optimism. Further analysis shows that the positive correlation between "debt reduction" strategy deleveraging and analysts' earnings forecast optimism is more significant in state-owned enterprises, listed companies with low internal control quality and low institutional shareholding.The research in this paper is not only of practical significance to understand the choice of corporate deleveraging strategy under the supply-side structural reform in China and to explore the factors that affect analysts' earnings forecast optimism, but also provides a theoretical basis for promoting government departments to implement a proactive and prudent corporate deleveraging policy.

KEYWORDS

Supply-Side Reform, Deleveraging Strategy, Analysts' Optimistic Earnings Forecast

CITE THIS PAPER

Mengying Mao, Supply-side Reform, the Choice of Deleveraging Strategy and Analysts' Earnings Forecast Optimism. Information Systems and Economics (2022) Vol. 3: 58-65. DOI: http://dx.doi.org/10.23977/infse.2022.030409.

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