Abstract: Adopting textual analysis and empirical tests on A-share SOEs from 2011 to 2021, it's found that fault-tolerance pilots by these enterprises notably enhance forward-looking information disclosure. The mechanism is shown to boost this disclosure by increasing risk-taking in decision-making processes. Combined with mixed-ownership reform and state-asset supervision reforms, these policies create synergies that further advance SOE disclosure. Economic consequence tests reveal that fault-tolerance policies motivate the disclosure of higher-quality forward-looking information, reducing information asymmetry and lowering SOE capital costs, while authentically reflecting their growth potential and strengthening future value creation and transformation capabilities.

Key words: fault tolerance and correction mechanism, forward-looking information disclosure, state-owned enterprise reform