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Marital co-governance and analysts’ earnings forecast accuracy: evidence from China

Hui Zheng & J. Y. Zhang

International Journal of Emerging Markets2026https://doi.org/10.1108/ijoem-12-2024-2175article
AJG 1ABDC B
Weight
0.50

Abstract

Purpose This research aims to test how marital co-governance affects analysts’ earnings forecast accuracy (AEFA) as well as the channels and scenario conditions between the two. Design/methodology/approach The authors use a sample of A-share listed family firms with marital co-governance from 2008 to 2024 to explore how marital co-governance affects AEFA by employing the ordinary least squares (OLS) method. Moreover, we adopt the Heckman two-step, two-stage least squares (2SLS), system generalized method of moments (SYS-GMM), and omitted variables approaches to address endogeneity issues. Findings The results reveal that marital co-governance enhances AEFA and reduces analysts’ forecast error and dispersion. Channel tests show that marital co-governance enhances AEFA by improving internal controls, reducing earnings volatility, and enhancing environmental, social and governance (ESG) ratings. Cross-sectional tests reveal that the enhancing effect of marital co-governance on AEFA is more prominent for family firms with high corporate governance levels, an absence of in-law involvement in management, intense industry competition, and high levels of social trust. Originality/value This study contributes to the literature on the determinants of AEFA from the perspective of marital co-governance and to studies of the economic consequences of marital co-governance. This research further reveals the channels and scenario conditions between marital co-governance and AEFA and explores the impact of “couple store” family firms on AEFA by providing novel insights into the decision-making patterns and financial behavior of family firms from a broader perspective.

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https://doi.org/https://doi.org/10.1108/ijoem-12-2024-2175

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@article{hui2026,
  title        = {{Marital co-governance and analysts’ earnings forecast accuracy: evidence from China}},
  author       = {Hui Zheng & J. Y. Zhang},
  journal      = {International Journal of Emerging Markets},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1108/ijoem-12-2024-2175},
}

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Marital co-governance and analysts’ earnings forecast accuracy: evidence from China

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.