Purpose: The purpose of this paper is to examine the impact of corporate governance on the capital market participants’ abilities to forecast future performance, as measured by the properties of analysts’ earnings forecasts in Asian stock markets. Design/methodology/approach: This paper...

This study examines the effect of firm investment on stock returns by using data on the Chinese stock market. We find that stocks with higher investment experience lower future returns and there is an obvious investment effect in the Chinese stock market. The investment effect is stronger for...