An Study On The Relationship Between R&D Information Disclosure And Analysts Earnings Forecast

With the intensification of market competition, more and more companies realize the importanceof scientific and technological innovation. R&D activities are more and more importance inenterprises as a source of innovation. Companies put the large number of financial and humanresources into R&D activities, R&D play a very crucial role in scientific and technological enterprise.The status of R&D activities enhancing makes the information of R&D activities more important,accounting information users would express high requirement on R&D information disclosure. Thereare many scholars have researched on the relationship between the disclosure to R&D informationand enterprise valuation, and the relationship have been confirmed, at the same time, scholars foundthat there are many problems existing in the information disclosure. Would the level of R&Ddisclosure affect security analysts’ forecast behavior, and how it affects their behavior, the study onthose have important implication for improving the level of R&D information disclosure, and it willimprove market efficiency and protect the investor’benefit.In this paper, the technology public companies focused by analysts are chosen as the researchsample, collect and reorganize all of the R&D information and learn from domestic and foreignscholars on excellent R&D information evaluation index, combined with the present situation of ourcountry, then design a set of comprehensive evaluation of the degree of R&D information disclosureof our country index. According to this research of information disclosure, the result found that thehigher degree of R&D information disclosure, the more accuracy of analyst earnings forecasts.Then the paper study one the different types of R&D information disclosure, the result showsthat the degree of R&D information disclosure of different types have different influence on analystearnings forecast, and the influence of the index of R&D input is most significant.R&D investment makes the degree of information asymmetry increase, and under the differentdegree of information asymmetry, whether the degree of R&D information disclosure will havedifferent effects on analysts’ earnings forecasts? This paper divided the samples into two groups ofhigh and low R&D investment. The result found that in the high R&D investment group, the degreeof R&D information disclosure has a significant influence on analysts’ earnings forecast, while in theother R&D of low intensity group, disclosure did not have significant effect on analysts’ earningsforecasts.R&D investment will cause the degree of information asymmetry increase, then under thedifferent degree of information asymmetry, whether the degree of R&D information disclosure havedifferent effects on analysts’ earnings forecasts? Therefore, this paper divided the samples into the groups of high degree of information asymmetry and low degree of information asymmetry. Theresult found that in the high degree of information asymmetry group, degree of R&D informationdisclosure have a significant effect on analysts’ earnings forecast, and in the other group, the degreeof R&D information disclosure did not have significantly affection on analysts’ earnings forecasts.According to the theoretical analysis and empirical results, the paper suggest that the enterpriseshould standardize information disclosure format, improving the disclosure of R&D information inthe notes to the financial statements, supervision departments should publish research informationdisclosure index regularly. At the same time, analysts should improve the ability of reading theinformation of R&D.