Does the Tone in Corporate Social Responsibility Reports Misdirect Analysts’ Forecasts in China?

With increasing emphasis being placed on corporate social responsibility, the number of companies furnishing responsibility (CSR) reports is increasing. This study investigates impact abnormal positive tone in CSR analysts’ earnings forecast bias. The textual analysis Chinese listed between 2006 and 2016 reveals that an significantly positively relates to optimistic bias forecasts. effect pronounced among with poor financial transparency those operating regions where culture stakeholder-oriented. Further confirms poorer company’s performance, more it tends mislead analysts using its report. Based these findings, this suggests firms may greenwash abnormally their reports.