Common Analyst And Corporate Investment Evidence From A Quasi-Natural Experiment Of Brokerage Backdoor Listing

Using broker backdoor listing as a quasi-natural experiment,we examine the effect of exogenous changes of common analyst on corporate investment.The results show that investment scale of the firms covered by the common analysts of the backdoor listing brokers have improved significantly compared with those of the common analysts covered by the non-backdoor listed brokerage firms.And the supplementary test results show that for the same common analyst,the corporate investment before brokerage backdoor listing can influence the corporate investment significantly after brokerage backdoor listing.Further,Common analyst characteristics and company characteristics can affect the positive role of corporate investment effected from common analyst.We find that corporate investment effect from common analyst is much stronger for firms whose quality of information transmission of common analyst is higher,common analyst ranking is higher,whose return of investment is lower,or whose financing constraints are higher.The information environment also plays an important role in estimating corporate investment effect from common analyst.When the economic policy uncertainty is lower or the degree of marketization is lower,corporate investment effect from common analyst is much stronger.Then,we conduct robust tests such as parallel trending test,randomization test,full sample test and the sample test of all listing brokerage,and eliminate the alternative explanation of the industry learning effect.Finally,the results show that the positive role of corporate investment effected from common analyst can enhance the company's operating performance and market value significantly.Our findings provide new evidence for the causal relationship between common analyst and corporate investment,and enrich the literature of the company's real decision-making effected from common analyst,which is significant for understanding the effect of common analyst on firm interactions.