Internal Control Quality,External Governance Environment And Analyst Earnings Forecast Behavior

Securities analyst(hereinafter referred to as analyst)acts as an information intermediary in the capital market in China,by studying the external macroeconomic,legal environment and industry competition,collecting various channels of the company's financial and non-financial information,to predict the future business strategies and profitability of the company,and the prediction information can help investors and other information users to make decisions.The profit forecast report by analysts can promote capital market information environment,and reduce the phenomenon of information asymmetry,so as to improve the efficiency of capital market allocation of resources,therefore the influence factors of analyst earnings forecasts become the focus of many scholars attention.Enterprise internal control and external governance environment as two important governance mechanism,can guarantee the reliability of the enterprise financial information,and make the enterprise reflect the real status of management,financial risks and benefits,which are the guarantee of analyst earnings forecast information environment an important institutional arrangements.However,less and existing literature studies the impact of internal control quality on earnings forecasting behavior from two aspects of internal and external governance.This article not only empirically study the relationship of internal control quality and analyst earnings forecast behavior,and explore the effect of internal control quality on analyst earnings forecasts under different external governance environment.Based on the 2011-2016 a-share listed companies in our country as the research sample,using di bo company internal control index,wind analysts predict data in the database,and other financial data,studies the relationship of internal control quality and external management environment and the behavior of analyst earnings forecasts.After using Stata14.0 to descriptive statistics and correlation analysis,respectively study the effect of internal control quality on analyst earnings forecast accuracy and analysts tracking number,as well as the effect of internal control quality on analyst earnings forecasts under different external governance environment.This paper further studies the influence of internal control quality on analysts' earnings forecast behavior.Finally,according to the results of empirical research,from three aspects of optimizing the information of the capital market environment,improving the professional ability and building the good external governance environment to put forward countermeasures and suggestions for ascension analyst earnings forecast accuracy,and points out the insufficient of this paper and the future prospects.The following is the main research conclusion of this paper :(1)The higher the internal control quality of listed companies,the higher accuracy of analysts' profit forecasts,and more analysts' tracking numbers;(2)Product market competition has a negative regulatory effect on the relationship between internal control quality and analyst earnings forecast accuracy,and product market competition and the internal control quality has certain substitution;(3)Institutional environment negatively regulates the relationship between the quality of internal control quality and analysts' tracking numbers;(4)The internal control quality mainly influences the profit forecast behavior of analysts through earnings quality.