The Research On The Effect Of Accounting Information Comparability On Securites Analysts' Behavior

Securities analysts are principally engaged in securities research who are always regarded as the most important "translators" in the securities market.Their work is analyzing the complex information of the market with their knowledge and practical experience and providing forecast for different information users.It is effective for investors and other stakeholders to reduce the influences of the information asymmetry because securities analysts can tell the true value of the securities and make the stock market price closer to its true value.In that case,the market' resources allocation can be enhance effectively.The listed companies' financial information is the basic information for the securities analysts' work.And the accounting information comparability is one of the most important criteria of accounting information quality requirements.Though this study,we would like to find out the relationship between these two fectors and the way to improve securities analysts' forecast results.Firstly,this paper based on lots of relevant literatures about accounting information comparability and securities analysts' forecasting behavior.According to the information asymmetry theory,the contract theory,the principal-agent theory and the transaction cost theory,we decided to adopt the financial analysts follow the number,the surplus Forecasting accuracy and earnings forecasting to measure the behavior of financial analysts.This paper analyzes the influence of accounting information comparability in these three aspects and proposes three research hypothesis.Secondly,this paper adopt the data with the period from 2004 to 2015,which contain 1339 China's capital market A-share non-financial and insurance companies,and examines the correlation between accounting information and the trend of financial analysts' forecasting behavior.This paper drawed the model of Basu(1997),De Franco,Kothari and Verdi(2011)which proposed a model to measure the comparability of accounting information between different companies,and combined with Lang et al.(2010),Yip et al(2012)and Brochet et al.(2013)'s model which was used to measure the accounting information in a four-year,16-quarter period.We examine the accounting information comparability and financial analysts' forecasting behavior during this period Trend.and found the impact of accounting information comparability on financial analysts' earnings forecast behavior.The empirical results show that there is a significant positive correlation between the number of financial analysts and the comparability of accounting information,and the degree of divergence of financial analysts' earnings forecast is positively correlated with the comparability of accounting information to a certain extent.It means that it is feasible to promote the effective allocation of market resources by taking some measures to improve the accounting information comparability.