Analyst Following,Internal Control Deficiency And Institutional Ownership

The existing research on institutional investors value,existence of effective supervision,various disputes and conflicts of interest the strategic alliance of three major hypotheses,but according to foreign experience in the development of mature,institutional investors can by virtue of their professional knowledge and effective long-term investment experience to price stability,promote capital market return to rational role.And according to the study for investors holding preference,it is almost certain that the institutional investors tend to strong profitability,low risk,good corporate governance and corporate growth is better,but the current lack of internal control on the impact of institutional investors evidence.If the company internal transfer letter The number will affect the investment decision of institutional investors,then the signal will appear outside the company holding behavior of institutional investors and analysts as the? Between listed companies and investors information intermediaries,can be used as an external signal company,so this paper around outside investors,analysts tracking behavior path defects and influence mechanism investor behavior research company internal control,internal control deficiencies,specific research on institutional investors behavior will have an impact?Whether analysts focused on changes can affect the level of shareholding of institutional investors? Further if the company internal control This negative information will weaken the proportion of institutional investors.When a company's analysts track a large number of people,will it weaken the negative effect of internal control defects on institutional investors' shareholding?From 2009-2015 in Shanghai and Shenzhen A shares sample,we research on the analyst following 、 internal control deficiency and interaction influence on the institutional ownership based on the theory of signal transfer and the perspective of information preference.The research indicated that both from the static and dynamic perspective,there is internal control defects of the institutional investor shareholding company is low,but there are more company internal control defects and analysts tracking number its institutional investor shareholding is still high,analysts trace can effectively weaken the negative effects of internal control defects to institutional investors.The conclusion remains valid after control the endogenous problem.Which means on the one hand,internal and external information for institutional investors decision-making with different signal value and influence,the investors' decision-making cognition and information orientation preference,on theother hand the analysts tracking report itself has fully considered and absorbed the possible effect of internal control defects,analysts tracking signal is worth far more than the internal control defects on the influence of institutional investors holding.