Comparability,Analysts' Forecast And Credit Spreads

Comparability is an important indicator to measure the quality of accounting information.When business is the same,different accounting entities should be able to reflect the same situation.On the other hand,when the business is not at the same time,the accounting information should be able to reflect the difference.Comparable accounting information can help investors,creditors and other users of accounting information recognize the similarities and differences between two kinds of economic phenomenon.And they can compare different enterprise's financial position,operating results and future prospects,and make some analysis,identification and prediction.It can expand the accounting information usefulness and decision-making correlation,improving the efficiency of decision making.However,due to the difficulty of comparability measurement at the company level,its research is lagging behind and lack of other information quality characteristics,such as robustness,correlation and so on.In this paper,we will use De Franco(2011)earnings return model to study the comparability of accounting information from the company level.Throughout the domestic and international literature about comparability of accounting information,we find the most literatures study the influence of the comparability on the stock market.No one study the influence of the comparability in the bond market,and study the economic consequences in the bond market.But some research suggests that the bond market participants,including investors in current domestic are very concerning about the quality of accounting information.But there are serious information problems in China's bond market,leading to the slow development of China's bond market.If we improve the comparability of accounting information,we can provide higher quality information and more accounting information for investors.Improving the amount and the accuracy of public information,the problem of China's bond market will be alleviated.In this paper,we not only study the influence of comparability on the credit spreads,but also study the mediating effects of analysts' forecasting behavior by using the parallel multiple mediation model.Because China's bond market is not perfect,bond investors more likely to evaluate the value of a bond through the professional institutions,such as credit rating agencies and securities analysts.Then we can study the indirect affection of comparability on credit spreads through the influence of comparability on analyst forecast behavior and the influence of analysts predict behavior on bond credit spreads.In this paper,we select the data of China's A share listed companies from 2007 to 2014,and study the direct and indirect effects of the comparability on the credit spreads.The results show that the comparability of accounting information and corporate bond credit spreads have significant negative correlation.And the comparability through the significant influence on the behavior of analysts' prediction indirectly affect the corporate bond credit spreads.The stronger comparability financial statement have,the more analysts tracking,the higher accuracy analysts predict,the smaller dispersion analysts predict,and the lower credit spreads bonds have.In addition,the indirect impact of the comparability on the bond credit spreads is greater than the direct impact.