The Impact of Generalist CEOs on Analyst Forecast Bias: Evidence from China

This paper examines the impact of generalist CEOs on analyst forecast bias, with a focus on how the CEO's functional background moderates this relationship. Using a sample of Chinese listed companies from 2006 to 2020, we find that generalist CEOs significantly reduce forecast errors and dispersion, improving forecast accuracy. Additionally, the effect of generalist CEOs is strengthened when they have an output-oriented functional background, while production-oriented and peripheral backgrounds have a weaker or non-significant influence. By employing deep learning models to measure CEO functional experience diversity, this study provides new insights into how leadership diversity shapes market communication and information transparency, particularly in emerging markets like China. The findings have important implications for corporate governance and the role of executive leadership in enhancing market efficiency.