Information accessibility and analyst optimism: Evidence from China

Abstract We identify information accessibility as a determinant of analyst optimism. Using the sudden exit of Google's search services in China, we find that reduced information accessibility significantly increases optimism bias among analysts covering affected export‐oriented firms. Analysts with alternative data sources or stronger verification skills show less bias. The shock amplifies reliance on corporate disclosures, especially for firms with positive tone or earnings management. Institutional ownership and media scrutiny mitigate the effect, while buy‐side pressure exacerbates it. We additionally document downstream effects on price efficiency and labor markets. Overall, these findings illuminate a key driver of analyst optimism.