Research On The Influence Of Company Strategy And Its Changes On Analysts' Forecast Accuracy

The importance of strategy to the company has been continuously increasing and it has also received increasing attention from scholars.To maintain a competitive advantage and achieve long-term development,companies must choose the right strategy.because of the same environment,companies in the same industry often choose similar strategies.However,each company has its own unique resources,leading to different strategies.In this paper,we use the difference between corporate strategy and industry average strategy represent strategic characteristics of the company.With the rapid economic development and continuous changes in the macro environment,market competition has become increasingly fierce,companies need continuous reform and innovation,changes in the original strategy to achieve dynamic match with the external environment.As market intermediaries,analysts track and forecast listed companies and publish research reports to transfer information between companies and investors.Before making a forecast,analysts collect information from the target company,which is the basis for the analyst's forecast.Obviously,corporate strategy is the information that analysts will consider when they make predictions.Does the company's strategic differences and changes affect the analysts' forecasts accuracy?This article selects A-share listed companies that analysts tracked from 2012 to 2016 as sample.Based on information asymmetry theory,market-effective theory,and signal transmission theory.First explores the affect of company's strategic differences and changes to analyst forecast.Then,considering the impact of analyst industry expertise on analyst forecasts,explore the moderating effect.Further,we discuss strategic differences and strategic changes in terms of strategic R&D,sales,fixed assets,management,inventory,and finance.The results of the study indicate that strategic differences and strategic changes have a negative relationship with analyst forecasts accuracy,and that analyst industry expertise can mitigate this negative impact.The strategic differences in sales,fixed assets and management,and the strategic changes in sales,fixed assets,management,inventory,and finances affect the of analyst forecasts accuracy.Analyst industry expertise focuses on sales,fixed assets,and finance.Finally,based on the empirical results,come up with some suggestions.