Abstract:Base on the risk effect theory of Chinese enterprises' transnational operation, this paper takes Chinese A-share listed companies from 2007 to 2018 as a sample to explore the behavior, motivation, and economic consequences of multinational enterprises' earnings forecasts revision. This study finds that the probability and frequency of earnings forecasts revision announcement disclosed by multinational enterprises will significantly increase. The announcement of earnings forecasts revision disclosed by multinational enterprises has significantly improved the accuracy of management earnings forecasts. This paper excludes the alternative hypothesis that multinational enterprises revise the disclosed earnings forecasts based on the motivation of information manipulation, stock price manipulation, the rigidity of policy supervision and external supervision and governance pressure. The mechanism tests show that the product market risk, stock price fluctuating risk and overseas litigation risk caused by transnational operation are the important reasons for the listed companies to increase the earnings forecasts revision. Further analysis shows that for multinational enterprises, earnings forecasts revision can effectively suppress investors' noise trading and increase the information content of the stock price. The research conclusion of this paper has practical significance for guiding the capital market to correctly, objectively and rationally understand multinational enterprises' behavior of earnings forecasts revision.