Correlation Studies About Analysts Earnings Forecasts And Audit Pricing

China’s Securities Regulatory Commission issued the "public offering of securities companies to disclose information Questions and Answers No. 6--- remuneration paid to the accounting firm and its disclosure" as the turning point of the audit pricing research. This announcement clearly requires listed companies need to audit fees as an important matter to be disclosed in the annual report. This bulletin is not only the interests of investors, creditors and other stakeholders to facilitate access to the listed company’s audit costs of raw data, and audit fees may be disclosed as an important reference for the audit pricing research under the influence of a particular background factors. Although the main factors affecting the audit pricing has been basically formed, but scholars have been exploring new factors affecting audit pricing. In recent years, with the development of China’s capital market, the introduction of relevant laws and regulations so that China’s securities industry analyst gradually become standardized. Securities analysts in the modern capital markets is a user accounting information, is also the provider of accounting information. In practice, the supply of and demand for securities analysts earnings forecasts are rising rapidly: On the supply side: After finishing CSMAR database data, we find that the number of analyst reports has risen from 2001 to more than a dozen more than 30,000 copies. On the demand side: With the implementation of China’s Securities Regulatory Commission, "to develop institutional investors" this policy, in which the majority of investors, the concept of value investing has been widely disseminated, whether small investors or institutional investors will References listed company securities analysts forecast earnings reports for subsequent investments. Securities analyst earnings forecast information on the capital markets, the company’s management and auditors and so had a significant impact.This article draws on the theory of asymmetric information and audit pricing theory to study the Securities analyst earnings forecasts and related audit pricing. To test these relationships, with the Securities analyst earnings forecast accuracy and divergence to measure information asymmetry, through the collection from 2010 to 2013 China’s A-share listed company’s earnings forecast data derived empirical validation: Analysts forecast accuracy and divergence can be used as an alternative variable inherent risks. Securities analyst earnings forecast accuracy and audit pricing showed a significant negative correlation; Securities analyst earnings forecasts and audit pricing divergence showed a significant positive correlation. And in smaller companies and in the sample to be audited "Top 10" accounting firm, the relationship between the two is more significant. This article explains these results are: in the capital market, the analyst is the link important information intermediary between users and information of listed companies, and provide useful information to a third party. Finally, according to the findings of this paper, for improving the quality of analyst earnings forecast information put forward some suggestions.