Media sentiment and management earnings forecasts: Evidence from China

In this study, we investigate the relationship between news media sentiment and management earnings forecasts. Using A-share listed companies in China from 2007 to 2022, we find a negative relationship between media sentiment and the propensity of firms to issue management earnings forecasts. We also find that media sentiment is associated with the precision and accuracy of these forecasts. Overall, our study offers new insights into the underlying motivations and the quality of management earnings forecasts.