The Impact Of Information Disclosure Quality And Analyst Coverage On Stock Price Informativeness

Since the establishment of China's securities market in the past three decades,the market maturity has been greatly improved compared with the initial stage.However,China's securities market is still full of various types of noise trading at present.Financial fraud and other violations are common,while the securities market is still dominated by individual investors,and individual investors are highly speculative.At the same time,the information disclosure quality of listed companies in China is not optimistic.False disclosure and other information disclosure violations are endless.The firm-specific information contained in individual stock price is insufficient,and the listed company's stock price informativeness is not high.As the information carrier in the securities market,securities analysts can use their own advantages to suppress the formation of noise and improve the efficiency of the market.But at the same time,China's securities analyst industry also has many undesirable phenomena.The false ratings,unreasonable valuation and other violations indicate that the impact of securities analysts on the efficiency of securities market is still to be further investigated.First of all,this paper puts forward the concept of stock price informativeness,information disclosure quality and analyst coverage.On the basis of reviewing the information asymmetry theory,effective market hypothesis and noise trading theory,this paper introduces domestic and abroad literature of the stock price informativeness measurement,the impact of the information disclosure quality and analyst coverage on the stock price informativeness.According to the relevant theories and literature,this paper puts forward the relevant research hypotheses.On this basis,this article chooses a sample of A-share listed companies in Shanghai Stock Exchange from 2012 to 2016,and empirically tests the influence of information disclosure quality and analyst coverage on stock price informativeness.The empirical results show that information disclosure quality is positively correlated with stock price informativeness.The number of analyst coverageis negatively correlated with stock price informativeness and the accuracy of analyst coverage is positively correlated with stock price informativeness.There exists a common effect of information disclosure quality and analyst coverage on stock price informativeness.According to the theoretical and empirical analysis,this paper argues that,in order to improve the market efficiency,our country should improve the quality of mandatory and voluntary information disclosure of listed companies and regulate the development of the securities analyst industry.At the same time,the education of investors should be strengthened and investors should be guided to make rational investment.