Information Content And Impact Factors Of The Analysts’ Rating Of Chinext

In capital markets, security analyst is a special group, played a key role. Since1996,Chinese securities companies began to set up research department to research the listedcompanies and formed the research system whose core fundamentals is the companyresearch. In analyst reports, stock rating is the direct expression of the basic judgment ofthe analyst on stock investment value. In the emerging market, like China, we need furtherstudy on whether the analyst research reports can improve market efficiency.The paper investigates the rating reports of security analysts information content ofthe ChiNext stock and finds that the information of the analysts’ reports associated withthe same direction of CAR value. The analysts’ reports provided new information to thesecurity market and caused the stock price changes. And the new information wasreflected into the new stock price. It included that the analysts’ rating reports hadinformation content. The paper tries to find out the factors which affect the reports’information content in follow aspects: analyst reputation, rating strength and so on.Based on the data of the Chinese listed companies of ChiNext from June2010toJune2012, using the event study method, this paper conducts a thorough empirical studyon the CAR of the stock price rated by the analysts. Then the paper further conducts anempirical study on the factors which affect the reports’ information content. This paperanalyzes the information content of rating report of ChiNext, and study on the factorswhich affect the reports’ information content of ChiNext.