Abstract: Using a sample of Chinese A-share listed companies from 2005 to 2016, we investigate the relationship between managers’ IT background and voluntary earnings forecasts. The empirical evidence shows that managers’ IT background has a positive impact on voluntary earnings forecast. The effect is more pronounced for firms with more complex business. Further analysis shows that the adoption and implementation efficiency of IT and IS is the channel through which managers’ IT background affects their voluntary disclosure. Finally, we find that managers’ IT background can also improve their disclosure frequency, timeliness and precision. Positions that managers with information technology background work in have different effects on their willingness to disclose information. Our findings enrich the literature on managers’ personal characteristics and earnings forecasts. This paper also provides empirical evidence for firms seeking to improve their governance.

Key words: managers’ information technology background, voluntary earnings forecasts, business complexity, forecasts characteristics