The Study On The Relationship Between Analysts' Attention And LSD

With the continuous development of China's economy,the A-share market has attracted more and more attention from scholars all around the world.As the largest developing capital market in the world,A-share market has many "anomalies" under the unique institutional background of China.The phenomenon of large stock dividends is just one of them.The so-called "large stock dividends" refers to the phenomenon that in recent years,a large number of companies in Chinese stock market have decided to give not less than 5 stock dividends for every 10 shares when making dividend distribution decision.A lot of studies have shown that the essence of large stock dividends is a kind of behavior designed by insiders to help them carry out interest transfer by taking advantage of the "low stock price preference" of small and medium investors,and it seriously disrupted the order of capital market.Analyst is an emerging industry in China and its development and related regulations are not mature.With the traditional role of capital market information media and external supervisor,whether analysts have enough independence and professionalism,whether they can play the same role in Chinese capital market is still controversial.Based on information asymmetry theory,principal-agent theory,interest transfer theory and interest alliance theory,using China's A-share non-financial listed companies from 2012 to 2016 as the research object,this paper measures the analysts'attention from three aspects(the number of analysts' team tracking,the number of research reports tracking and whether there are analysts conducting site visit)and empirically explores the impact of analysts' attention on the large stock dividends phenomenon in China.Our results show that the higher the analysts' attention level,the more likely the listed companies in China to implement the large stock dividends scheme.And among the three analysts' attention variables,analysts' site visit has the highest promotion effect.The result is still valid after overcoming the endogenous problem.In addition,this paper also finds out that higher accounting information comparability and auditor level can effectively inhibit the positive correlation between analysts' attention and large stock dividends.Our study supports the view that analysts may lose their independence due to conflicts of interest or the influence of optimism of management,and form interest alliances with insiders in the process of tracking,especially when conducting site visit.The main contribution of this study is to explore for the first time the impact of analysts on the company's distribution behavior,and combine it with internal information quality and external audit quality.The results are of great significance to both academic field and real life.