| With the continuous improvement and development of China’s capital market, securitiesanalysts play an important role in the capital market. Securities analysts apply professionalknowledge and skills in analyzing and researching the various types of data they collect aboutlisted companies, and provide earnings forecasts and investment advices for investors.Securities analysts are not only the users of listed companies’ financial information, but alsothe bridge of communication between the corporate management and the investors. Analysts’forecasts not only affect the investment decisions of investors and the market allocation ofresources, but also affect the transfer efficiency between the enterprise information and thestock prices. So in view of the importance of the earnings forecasts, this paper studies theimpact on the factors affects the accuracy of analysts forecast.In the paper, we defined the Securities Analysts and the Earnings Forecasts. Based on theA-share listed company’s EPS forecasts that Chinese analysts apply over the period of2005-2010, we studied the accuracy of EPS forecasts. Also through multivariate analysis, weexamined the influence factors of accuracy from company features and securities analystfeatures.The research results show that: There are errors between earnings forecasts thatsecurities analysts applied and the actual earnings. Securities analysts more probably provideoptimistic estimates. Number of brokerage agencies to issuing forecasts information,institutional shareholding proportion and the ratio of intangible assets are significant positivecorrelated with analysts forecasts accuracy; The time span that analysts forecast, thepredictability of earnings management, the asset-liability ratio and the earnings predictabilityare significant negative correlated with analysts forecasts accuracy; while the size ofbrokerage and the analysts’ experience are not significant correlated with analysts forecastaccuracy. |
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