The Study On Characteristics Of Site Visit Information Disclosure And Influencing Factors Of Listed Companies In China

Recently, topics concerning analyst site visits get wide attention. Shenzhen Stock Exchange set the rule that all the public companies should disclose information about site visits in annual report since 2009. Compared with other ways to get information, site visit conveys more information. This informative activity can bring investors and analysts with more unique private information, which can help them to make more accurate forecasts. Institutional investors have more professional expertise and analysis ability than ordinary investors. They can reduce the degree of information asymmetry and elevate operating efficiency in the capital market. However, owning to the fact that institutional investors and analysts have limited time and energy, they have to choose the company before they make a decision on site visit. There are various factors that can affect analysts'site visit decision, and this paper focuses on finding the kernal factors that influence analysts'site visits.This paper firstly summarizes system background about information disclosure. According to the manually collected data, some characters regarding site visit information disclosure in listed companies of Shenzhen security market have been conclued. In the part of analysis of characteristics, we research content, formation, industrial distribution as well as frequency of site visit. The paper researches factors that affect site visit in two perspectives. From the side of company basic situation, we hypothesize that company's profitability and growth, as well as asset size, will influence institutional investors'decision on site visit. From the perspective of information disclosure environment, the paper proposes that information transparency level and institutional ownership can affect site visit decision. This paper makes empirical research on probability and frequency of site visits, using the date and sample from 2012 to 2013 in Shenzhen stock exchange.The consequence shows that both perspectives can affect site visits. Companies with higher profitability and asset size can attract more investor to make site visit. Higher information transparency level, as well as institutional investors'ownership, leads to higher frequency of analysts'site visit. The research will help investor to understand analysts'site visit, by the way investors can have better understanding of annual reports.