Prior research predominantly concentrates on the comprehensive financial disclosures of consolidated statements, often overlooking the distinct informational value inherent in the financial statements from parent companies. The debate continues on whether the frequency of disclosures from parent companies should align with that of their consolidated counterparts. The periodic dissemination of a parent company's financials can significantly reduce information asymmetry, thus enabling analysts to promptly and accurately grasp the firm's financial health. Yet, this increased frequency may come at the cost of information reliability, leading to more errors and promoting myopic decision-making among executives, which might lead to misguided analysis. Drawing on shifts in China's financial disclosure mandates – from obligatory to optional quarterly reporting by parent firms – we observe that analysts tend to generate more precise earnings forecasts for those publicly traded entities that refrain from quarterly disclosures of parent company reports. This enhancement in forecast precision is particularly marked in instances where corporate information quality is substandard or when analyst coverage is extensive. Supplementary findings suggest that this effect intensifies for annual reports audited by firms outside the Big 4 and when there is more coverage by other media. Consequently, our findings imply that easing the stringent quarterly reporting by parent companies and adopting a voluntary disclosure system does not diminish the informational richness available to investors.