A Study On The Comprehensive Impact Of Product Market Power And Internal Control On Analyst Forecast

With the continuous development of capital market,financial analysts have become an indispensable part.In Chinese emerging markets,the problem of information asymmetry is still grim.As the information bridge,financial analysts will alleviate the problem of information asymmetry,and promote the efficiency of capital market.It is worth noting that the value of earnings forecast information depends on its quality.So,in order to help analysts play better roles in the capital market,it's necessary to further explore the factors influencing analyst earnings forecast.The existing researches in this area mainly focus on the accounting information quality,and ignore the influence of product market.The product market is a important external environment.Previous studies have shown that market competition affects earnings characteristics,earnings management and information disclosure and so on,and then affects the earnings predictability and the information's quality.In addition,as a part of corporate governance,the internal control can affect the way in which the company delivers information to the outside.So the internal control is the internal factor affecting analyst earnings forecast.In this paper,market power,internal control and analyst earnings forecast is placed in a research framework,and then we analyze the combined effects of the first two factors on analyst forecasts,it has strict integratey and logic.We select samples from A-share listed companies from 2007 to 2014.Based on individual firm level,this paper analyzes the influence of the market power and internal control quality on analyst earnings forecast.The results show that the greater the market power and the higher the internal control quality is,the smaller the divergence degree,the higher its accuracy and the smaller its deviation is.This paper further adds the interaction term of market power and the internal control quality in the regression model and futher uses grouping regression,finding that impacts of market power and the internal control quality on analyst earnings forecast have a substitution effect,in other words,maket power and the internal control weak each other's impact on analyst forecasts.