Research Of Corporate Social Responsibility Disclosures Influence On Analyst Earnings Forecasts

Corporate social responsibility (CSR) disclosure is the channel used by firms to communicate with stakeholders about their situation of economic, social and environment, and can fully reflect the CSR fulfillment. Under the background of social responsibility reports emerging in recent years, the economic consequences that CSR disclosure bring is the most pressing question. Many scholars found that CSR disclosure can produce a positive market reaction and can affect the financing cost and investment efficiency. Along with the development of the securities analyst industry, more and more investors trust and rely on the advice offered by securities analyst as investors have the limitation of time and professional ability in the capital markets. The prediction behavior of analysts is closely related with the information environment of the capital market, the quality of information disclosure has important influence on analyst earnings forecast. As CSR disclosure which contains extensive contents and facing the future is mainly directed towards stakeholders, can reflect the value of the company and provides a source of information for securities analyst. Then, whether CSR disclosure can affect the behavior of securities analyst?We select enterprises which release CSR report in 2010-2013 as the basic samples, and use the score rated by RKS as the proxy for CSR disclosure. On the basic of effective market theory, asymmetric information theory, signal transmission theory, stakeholder theory and cost-profit theory, we study the affection of CSR disclosure on analyst earnings forecast, and further discuss the different affection in firms with different financial information quality. The results show that CSR disclosure level is negative related to the analyst earnings forecast error and the relationship is stronger for firms with more opaque financial disclosure, CSR disclosure level is negative related to the analyst earnings forecast divergence degree and the relationship is also stronger for firms with more opaque financial disclosure.Finally, On the basis of the empirical test results and related analysis, We put forward should strengthen the social responsibility information disclosure and promote social responsibility information disclosure specification.