Empirical Research Of The Association Between Outside Directors, Institutional Investors And The Properties Of Management Earnings Forecasts

The earnings forecast information in capital market plays a very important role, at thesame time, the company’s future earnings level is finance on a very important indicator.Securities market all kinds of information are influence share price fluctuations, largelybecause they make investors in the company’s future earnings expectations effect, and thenaffect the investors to the company’s value judgment. At the same time, surplus forecast isChinese listed company information disclosure system important constituent, therefore,surplus forecast information is specific, namely, whether has the efficiency is directly relatedto the quality of information disclosure of listed companies.This article mainly through affecting the efficiency of the listed company earningsforecast with two factors namely, correlation analysis of independent directors andinstitutional investors, to illustrate the surpluses of management of listed companies issuedforecast can not only for investors, creditors and the government and the social publicinformation users provide relevant enterprise financial position, operating performance, andcash flow of information, and can also provide information about enterprise future trend: theprofit or loss. At the same time in order to better meet the external investors and securitiesregulators of earnings forecast information quality put forward higher demand for relevantcountermeasures to improve the quality of the listed company earnings forecast information.Aiming at the effects of independent directors on the management earnings forecastefficiency, this article mainly from the proportion of independent directors, to attend theboard meeting frequency and compensation in three aspects to describe the characteristics ofthe independent director, and the character of independent directors on the managementearnings forecast efficiency. Aiming at the effects of institutional investors on managementearnings forecast efficiency, this article mainly characterized by institutional investorshareholding. Results found that:(1) the characteristics of independent directors and themanagement earnings forecast efficiency was positively related to the relationship.(2) theinstitutional investor shareholding proportion and management earnings forecast efficiencywas positively related to the relationship. Institutional investor shareholding, the greater themanagement earnings forecast information is more detailed and specific managementearnings forecast is also more efficient.In this paper, the results show that independent directors and institutional investorsearnings forecast is closely related with the management layer, the results will promote astronger governance can also promote more transparent information disclosure. Nowinvestors of listed companies management earnings forecast information quality needsimproving, securities regulators are intensify efforts to improve the management of listedcompanies of earnings forecast information quality related systems. To this, this article alsoproposed accordingly to improve the quality of listed company earnings forecast informationmanagement related countermeasure.