The Impact Of Analysts' Earnings Forecast Quality On Corporate Investment

Because of the separation of ownership and management power,information asymmetry has become an important factor on corporate investment.As an important information medium,analysts strengthen the communication between corporate and investor,playing an indispensable role in changing investor's inferior position.In western countries,analysts have grown mature,while in China,analysts start and develop later,existing problems such as black mouth,interest conflict and herd effect.Even so,Comparing with the Manager earnings forecast,Analysts' earnings forecast quality is still a more important information source for investors.Thus,the impact of analysts' earnings forecast on investment activities has become an important research issue for scholars.Looking at the existing literatures,scholars have made rich achievements about analysts' earnings forecast on investment efficiency,but mainly focus on analysts' tracking(attention degree),not from forecast quality.In order to make up the lackness,this paper investigate the influence mechanism of the analysts' earnings forecast on investment efficiency.According to the logical sequence,divide this paper into six chapters.The first chapter introduces the research background and significance,the definition of basic concepts and its calculation method.Then,design the research framework of this article;Chapter 2 summarizes the literature about relationship between analysts and investment efficiency,and makes a corresponding review;Chapter 3 based on existing theories and literature research,infer the relationship between analysts' earnings forecast quality and investment efficiency theoretically,put forward hypotheses;Chapter 4 is research design,including variables interpretation,model setting,sample selection and data sources;Chapter 5 a carry empirical test and give regression results;The last chapter are conclusions and suggestion.Conclusions are:(1)Earnings forecast quality help to improve the investment efficiency;(2)Information quality and agency cost have partial mediating effect in the process of earnings forecast quality affecting the investment efficiency;(3)Analysts' earnings forecast quality has an inter strengthening relationship,which forecast consistency can enhance the impact of forecast accuracy on investment intensity.Marketization can promote the positive impact of the analyst's earnings forecast quality on investment efficiency,the higher the marketization,the greater the impact of analyst's earnings forecast quality on investment efficiency;(4)Institutional environment influence the relationship between analyst's earnings forecast quality and investment efficiency,in the areas where the operating environment and the legal environment are good,analyst's earnings forecast quality has a greater impact on the investment efficiency.Recommendations are:(1)For company,investment decision-making execution activities should fully absorb the views;(2)For analysts,we should further explore the connotation of information,improve the quality and accuracy of prediction,and enhance the economic value of earnings forecasts;(3)For industry supervision,we should improve access conditions,strengthen moral supervision,enhance earnings forecast ability,eliminate excessive “bad reviews” or “good reviews” under the transaction of money rights.