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Valuing financial data: The case of analyst forecasts

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  • Li, Zhenghui
  • Xu, Yanting
  • Du, Ziqing

Abstract

Investors seek financial market information to maximize returns and minimize risk. This study examines the value of financial information employing quarterly analyst data from 144 A-share listed companies in China (2008–2023). It investigates how financial data enhance investor welfare, varies by wealth levels and market competition, and differs across assets. The findings reveal three key insights: (1) Analyst forecasts enhance investor welfare, especially for wealthier investors. (2) Data value decreases in markets with price impact. (3) Financial data are most valuable for medium-sized assets with high analyst attention and transparency.

Suggested Citation

  • Li, Zhenghui & Xu, Yanting & Du, Ziqing, 2025. "Valuing financial data: The case of analyst forecasts," Finance Research Letters, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:finlet:v:75:y:2025:i:c:s1544612325001126
    DOI: 10.1016/j.frl.2025.106847
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    References listed on IDEAS

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    2. Paoyu Huang & Yensen Ni & Min-Yuh Day & Yuhsin Chen, 2025. "Enhancing Investment Profitability: Study on Contrarian Technical Strategies in Brent Crude Oil Markets," Energies, MDPI, vol. 18(11), pages 1-19, May.

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    Keywords

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    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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