Abstract:This paper examines the impact of language diversity on the precision of analysts’earnings forecast, which may show different results depending on the different level of employee’s education. This paper pro-vides empirical evidence that the diversity of language may reduce the precision of analysts’earnings forecast for the listed companies in China. However,this negative effect is weakened by the improvement of employee’ s education. Further results illustrate that the level of employee’s education may positively influence the rela-tionship between language diversity and the precision of analysts’earnings forecast when the analysts and CEOs are schoolmates. These findings will enrich the literature of information dominance and social relationship of analysts and help investors and regulators to understand the behavior of analyst. Also,these may help to im-prove resource allocation and the effectiveness of capital market.