Value Relevance Of Financial Assets At Fair Value,Analyst Ratings

Based on price model and returns model,this thesis uses Chinese A-share listed companies from the period from 2007 to 2016 as sample,and aims to study the relevance between frequencies of analyst ratings,difference in analyst ratings and stock prices and to study the effect of analyst ratings on the relevance of financial assets measured at fair value and stock price.In the capital market,analysts are important information transmitters,which transmit information about the intrinsic value of the company by releasing profit forecasts and investment ratings to the market,which in turn influences investor decisions.From the perspective of information mediation,this paper adds the analyst rating variable to the traditional stock price model to explore its adjustment effect on the correlation of financial assets and fair value changes in fair value measurement.The regression results show the following findings.Firstly,after adding the analyst's rating variable,the correlation between financial assets at fair value,gains and losses from fair value changes and the stock price is enhanced,and the model fitting effect is enhanced.Whether the company receives analyst rating is positively correlated with stock price.Second,the sum frequency of analyst rating,ann the frequency of buy,increase,neutral and sell ratings are significantly positively correlated with the stock price;the number of rating agencies that release any ratings and release buy,increase,neutral,and sell ratings are positively correlated with the stock price.Third,the frequency of rating changes,the degree of rating difference is significantly positively correlated with the stock price.Fourth,the sum frequency of ratings will enhance the positive correlation between financial assets at fair value,profit and loss from fair value and stock price;the difference in ratings will enhance the positive correlation between financaial asset at fair value from fair value and stock price.The frequency changes of ratings will enhance the positive correlation between gains and losses from fair value and stock returns.The research results in this paper have certain theoretical and practical significance.In theory,academic research on the value relevance of fair value measurement has been relatively mature.The analysts'value-relevant literature research mainly focuses on the correlation between analyst ratings and stock market performance,analyst forecast and rating factors.At present,the literature is less concerned with the correlation between analyst ratings and stock prices,and the adjustment of analyst ratings to the fair value measurement value.This paper attempts to enrich results in this field;the current literature about relevance between analyst rating and stock performance mainly uses the event study methodology and the cumulative abnormal returns model.This paper attempts to adopt the stock price model.In practice,based on the research results,if the analyst team building and investor education can be strengthened,the value relevance of fair value information can be promoted.This paper provides a reference path for improving the value relevance of fair value measurement,and provides certain implications for investors to make rational use of information to make investing decisions.