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Abstract Considering the contemporary background of China’s implementing innovation driven development strategy, this paper, from the perspective of market information intermediary, studies whether security analyst optimism bias affects corporate innovation or not. Our findings show that analyst optimism correlates with corporate innovation significantly and negatively, which indicates that analyst optimistic behavioral bias has an adverse effect on corporate innovation. However, the negative correlation is weakened with the extension of the management tenure or the enhancement of accounting information comparability, which means that augmenting managers’ career concern is one important way to restrain corporate innovation caused by analyst optimistic bias, and improving the quality of accounting information can alleviate the negative influence.
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Received: 06 March 2017
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