Research On Star Analysts Recommendation Changes Influence

The star analysts selected from a large number of analysts,Who have more professional knowledge and have more timely company and market information.The research significance of this paper is whether the recommendation changes of star analysts can predict more objectively and comprehensively.Whether they can have more influence on Chinese stock market than that of non-star analysts.Based on the data of Chinese analyst recommendation changes from 2010 to 2018,this paper determines the market influence of recommendation changes based on the cumulative abnormal turnover rate and the cumulative excess return.Using panel model to study the impact of analysts' various capability indicators on the market The explanation of force is to compare whether the market influence of star analysts is different.Contrast the market influence differences between star analysts and non-star analysts.The study found that less than 15% of ratings changes have market impact.The study found that analysts with high forecast accuracy,recommendation changes away from consensus,and numbers of being star analysts had significant influence on the market influence,but the star analysts who were included in the new fortune list could not explain the market influence.The results of the study are still valid in each robustness test.Further explore the reasons why the star analysts could not explain the market influence.it's found that the irrational factors and the limited information competition factors have significant influence on the market influence.There are irrational factors and limited information competition in Chinese stock market.Irrational factors and limited information competition can explain that star analysts do not have significant market influence.This paper discusses the economic significance from the perspective of investors,analysts and regulators.This paper is of referential significance for strengthening the supervision,guidance of analysts,optimizing the method of selecting star analysts and promoting the protection of investors.