The cross-board spillover effect of innovation information: Establishment of the Star Market and Main Board analyst forecasts

Studies show that innovation information disclosed by listed firms affects the decision of non-listed firms and their stakeholders. This paper explores whether innovation information disclosed within a specific list board (i.e., market) also spills over to other list boards. Based on the establishment of China’s Star Market, we conduct an empirical test from the perspective of analyst forecasts. We find that (1) The accuracy of analyst forecasts of Main Board firms with greater information similarity to Star Market firms is significantly higher than that of Main Board firms with lower information similarity. (2) This effect is significantly stronger in samples with a substantially lower listing threshold for innovation firms, for Main Board firms with stronger innovation characteristics and when market innovation information needs are greater. (3) This affect is enhanced by analysts’ tendency to track Star Market firms with similar information to their tracked Main Board firms. These results enrich research on the spillover effects of innovation information and factors affecting analyst forecasts.