A Study On The Regulating Effect Of Analysts' Attention On Investors' Cognitive Effect

The traditional capital asset pricing model is based on the full market hypothesis.It believes that information is completely circulated.There is no information asymmetry and incomplete information.Every investor can get all the information of the past,present and future of the enterprise.There is information cost and there is no excess retum.However,in the real capital city,there is information cost.Based on this,Merton(1987)proposed a capital market equilibrium model under incomplete information conditions.He believes that investors want to acquire and interpret non-Public information requires cost,and each investor has different ability to acquire and interpret information.Based on this information constraint,Merton believes that investors do not always have access to all the stocks in the market.At the same time,they only choose stocks they know to build their portfolios,and the company is invested more.As you know,the greater the possibility of being invested,the higher the value of the company.But in the Chinese capital market,individual investors are the mainstay,investor protection is weak,and information transparency is low.Therefore,investors' information asymmetry and incomplete information level are higher than mature capital markets.One of the channels through which investors obtain information,especially unpublished information,is the securities analyst,which has led to a significant development in the securities analyst industry.Securities analysts will obtain undisclosed information on the market through their professional convenience and interpersonal relationships,and use their expertise to interpret and communicate to investors,thereby increasing the information supply of enterprises,reducing the degree of information asymmetry and the degree of incomplete information.As an information bridge between companies and investors,analysts influence investors through the transmission of information,which in turn affects corporate performance.Therefore,based on the characteristics of China's capital market,the impact of research analysts on investors' cognitive effects is of great significance to the development of enterprises and capital markets.Based on the 2009-2017 Shenzhen-Australian A-share listed company data,this paper selects the number of analysts,analysts' earnings forecast error and analyst forecast information correction as the proxy variables of analysts' attention,and studies analysts as information mediators to improve investor perception.The role of corporate value adjustment,and further test the difference in the role of this property under different property rights.The results show that:First,the number of analysts will significantly affect the role of investor perception in promoting corporate value,and it will play a role in both incomplete information and information asymmetry.Second,earnings forecast dispersion has a negative adjustment effect on Investor Cognitive Effect.It not only shows that the earnings forecast dispersion reflect the lack of information,but also that the information disclosure of enterprises will affect the forecast results of analysts and the amount of information of investors.And resulting in a decrease in corporate performance.Third,the analyst's upward information correction will promote investor awareness.Corporate value,downward information correction will weaken investor perception and increase corporate value.In further tests,it was found that this regulation is more pronounced in the sample group with lower information transparency,that is,the analyst's attention to the adjustment effect of the investor's cognitive effect is more significant in the state-owned enterprises.Based on the above analysis,the recommendations are finally made from the perspectives of investors,business managers,securities analysts and market regulators.