Research On The Influence Of High-speed Railway Opening On Analysts Prediction Bias

With the construction of high-speed rail lines,the impact of the high-speed rail has gradually attracted the attention of scholars.High-speed rail has greatly reduced the space distance in time,which promoted the flow of people and information between regions,improved the information environment of enterprises,and made the people with high time concept more information timely.At the same time,the geographic accessibility also facilitates external investors and analysts to carry out research activities,which reduce the degree of information asymmetry between enterprises and external stakeholders.With the opening of high-speed rail,the information efficiency of capital market has been greatly improved.Analysts as the information medium of capital market,will their forecasting behavior change after the opening of high-speed rail ?In order to solve the problem,we use sample from 2005 to 2016 on the A-share listed companies in prefecture-level cities in China to explore the impact of high-speed rail opening on analysts prediction bias.It is found that the opening of high-speed rail is negatively correlated with the analysts forecast bias,and the effect is more significant in underdeveloped regions,central and western regions and cities without civil aviation.In the enterprise level,the impact of the opening of high-speed rail is more significant on the enterprises with higher internal control quality,while the combination of two positions,concentration of equity and the proportion of the largest shareholders have a negative impact on the high-speed rail opening effect.In the interest of the impact path of high-speed rail opening on analysts prediction bias,this paper conducts the analysts attention and number of surveys.The results show that the opening of high-speed rail increases the analysts attention of enterprises,prediction frequency and makes the number of enterprises surveys greatly increased.In addition,exploring the economic consequences of analyst bias after the opening of high-speed rail shows that it relieves the financing constraints,reduces the stock price synchronization and makes audit opinions more better.Our study expands the research of geographical factors that influence the analyst forecast bias,and it is also a supplement to the high-speed rail effect in the enterprise level.