The Effect Of Analyst Following On The Industry-whole Level

Analyst following refers to that the securities analysts research some companies and regularly release research reports for investors. Securities analysts are usually divided into the seller and buyer analysts, which has very strong industry attributes, usually only tracking companies within the industry. Their following of the companies will change along with the time and the market, but few following in companies of different industries. Because securities analysts are occupations of strong industry attributes, any empirical research on analyst following, if not take the industry factors into consideration system, will be lack of practical significance. At present, domestic and foreign scholars generally take the practice of industry characteristics as variables into one of their theory framework and empirical analysis model, and made a lot of research.This article attempts to take the whole industry as research object. Based on the industry-whole fundamentals database, this article design more intuitive empirical models, to test (1) industry characteristics factors that affect analyst following;(2) the relationship between the industry-whole analyst following and Industry index synchrony.Based on CSMAR and Wind database, this paper use the programming method of SAS and VBA and the division standard of Shenyin Wanguo one or two industries from2004to2012to calculate industry-whole analyst following number, and build industry-whole fundamental database covering sufficient index. This article develops a new perspective on the topic of theoretical and empirical research of analyst following.This study found that:(1) with the volatility of the industry larger, the proportion of institutional investors holding more high, industry growth stronger, the higher the level of profitability of the industry, the industry index bigger, the whole industry analysts following number is bigger;(2) the industry-whole analyst following number and the industry index with respect to the synchronicity of stock index was negatively correlated, which means that the analysts can excavate and transfer characteristics of information based on industry level.