Business Credit Environment,Analyst Behavior And Corporate Stock Excess Return

At present,capital market in China is developing rapidly.However,compared with mature capital markets,the operating efficiency of China’s capital market is still on the low level.Therefore,it is necessary for us to further study how to improve the operation efficiency of China’s capital market on the basis of analyzing the current situation of securities market.Due to the imperfect capital market in China,the stock price can not react well to the quality information of the company,and can not play the role of promoting the allocation of resources,which leads to the low efficiency of the capital market.For the efficiency of capital market,the excess return of a company’s stock is an important form of its performance.The existing research shows that,in addition to the internal financial information of enterprises,the external factors such as the business credit environment are also the important factors that affect the excess returns of the stock.Besides,securities analysts play an increasingly important role in the stock market.Through analyzing and disclosing information of listed companies,they establish channels for communication between enterprises and public investors.Recommendation is a major component work of their research.Rating prediction will have an impact on investors’decision making,and further affect capital market resource allocation.Accurate rating prediction will promote information transmission from the enterprise(real economy)to stock price(capital market).In this paper,I selected the analysts’ recommendation rating of the A-Share Listed Companies in the Shenzhen stock market from year 2011 to 2016 as research samples,and tested the factors affecting the relationship between the business credit environment and the excess earnings of the enterprise stock.It is found that business credit environment has a significant positive impact on excess returns of stocks.Furthermore,this paper classifies the sample from the perspective of the individual characteristics of analysts,the characteristics of analysts’behavior and the characteristics of enterprises,and then finds that in the case of distinguishing whether an star analyst is experienced,the impact of the corporate credit environment on the excess earnings is significant in the general analyst group;In the case of distinguishing whether rating is positive or not,the better the city business environment,the higher the value of the analyst’s recommendation rating in the positive rating group;In the case of distinguishing whether the quality of information disclosure is high or not,the better the city business environment,the higher the value of the analyst’s recommendation rating in the poor-quality group.That is to say,a sound business credit environment can weaken the influence of information disclosure quality on excess returns of stocks to a certain extent.According to the findings of the study,four suggestions are proposed:(1)strengthening the construction of business credit environment for enterprises;(2)strengthening the supervision of analysts’ industry,we also need to strengthen the discipline of analysts;(3)strengthening supervision and management of financial information of listed companies,and strengthening mandatory requirements for information disclosure of listed companies;(4)guiding investors to establish a correct investment concept.The innovation of this paper is mainly reflected in the introduction analysts’ behavior as information intermediary,and from the perspective of the external macro system to investigate the excess returns of the stock.Few studies have combined the research of the two in the past.From the perspective of the individual characteristics of analysts,the characteristics of analysts’behavior and the individual characteristics of the company,this paper further studies the factors that affect the excess returns of the stock in the business credit environment,and expands the scope of the research in the related fields of the domestic securities market.