Research On The Influence Of Securities Followin On Investment Efficiency

With the continuous development of the capital market, securities analysts as “information intermediary” between investors and the companys are become more and more important whether in theory or its practitioners. However, have a review of the relevant research at home and abroad, it is not difficult to find that the relevant current research about analysts are mostly focused on its earnings forecast, and its impact on the stock price, few literatures focus on its impact on the company’s investment and financing behavior. Many studies have shown that, analysts will help alleviate the information asymmetry between the listing corporation and the outside through interpretationing the public information professionally and mining private information, and then released related research report.This can speeding up the enterprise information dissemination of the depth and breadth, but also accelerated the liquidity of stock enterprises, thereby affecting the investment decision of enterprises.Whether analysts following can affect the efficiency of companies’ investment efficiency? If it dose, then what is the internal mechanism of its effects? The communication of information between enterprises and stakeholders can lead to a decrease in the degree of external financing, it can reflects the degree of ease of analysts on the adverse selection and moral risk in a certain extent. So the analysts is likely have an effect on investment efficiency through the external financing behavior.However, the exposure of wrong prediction from securities analysts in the media in recent years did harm to interests of investors, affecting the image and reputation of Chinese securities analysts seriously. Therefore, research in this paper will be carried out from the influence on investment efficiency shed by the securities analysts to study whether securities analysts can play the role as the legal protection of investors to reduce the information asymmetry and improve the transparency of information.Based on the theory of analyst following can influence external financing and investment efficiency, we make a research between analyst following and investment efficiency in external financing perspective. Then select 2007-2013 Shenzhen and Shanghai A-share listed company data, bridge regression model was constructed to investigate the relationship between analyst and corporate investment and financing. Eventually we come to the conclusion of this article: 1.analysts following is in a significant negative correlation with the degree of financing constraints of enterprises.2.analysts following is in a significant negative correlation with the degree of insufficient investment.3.The effect on insufficient investment by analysts, largely due to the analystsfunction on financing constraints.4.analysts following is in a significant postive correlation with the degree of overinvestment. Based on the above conclusions, We put forward the related advice.