The Influence Of Securities Analyst’s Interest On Earnings Forecasts

Security analysts play an important role in the security market as an information transmission bridge between listed company and investors. The efficient information supply of security analysts, which is the subject of this study, is crucial to the efficiency of security market. But the security analysts are the benefit conjugant. They are affected by many factors. So the author will study the Chinese security analysts from the benefit elements.Under the effective market hypothesis and the information asymmetrical theory, the Chinese security analysts are affected by many benefit factors. The purpose of the research is that we analyze the detailed data to study the Chinese security analysts from the aspects of the benefit elements. For example, when the Chinese security analysts provide the consulting service, they face the pressure of their companies, the administrators of the listed company, the investors and the slef-benefit of Chinese security analysts.This paper consists six parts:Part one introduces the research background, the objective and the meaning of the research.Part two reviews domestic and foreign gains the forecast research results about the securities analyst. At last we carry on the simple narration to the domestic and the foreign literature in order to have a better understanding to the next part of the research.Part three mainly introduces the situation of the Chinese security analysts, including the definition, the classification and the function of the Chinese security analysts. Then, we introduce the development process of the Chinese security analystsPart four mainly introduces the correlation theory foundation, including the effective market hypothesis, the information asymmetrical theory and related content of the earning forecast. Then we introduce benefit conflict elements of the Chinese security analysts.Part five is an empirical analysis of this research. We analyze the data of the listed companies, and use the correlative data from 2008 to 2010. Then we select the earning predictability, the earning fluctuation, the listed companies scale and so on to do the empirical analysis about benefit elements of the Chinese security analysts.Part six is the conclusion. Based on above research, this paper draws the conclusion and proposes some insufficiencies of the article in order to improve it in the future.