Research On Corporate Financialization, Institutional Investor Holdings And The Accuracy Of Analyst Earnings Forecasts

Analysts are the information bridge of the capital market,which can alleviate the information asymmetry of the capital market.Accurate earnings forecast of analysts can help investors understand enterprises,and enterprises can finance funds,so as to realize the healthy development of the securities market.Under the background of deepening financialization of enterprises,it is necessary to study the impact on analysts' earnings forecast.Analysts not only provide announcements to the capital market,but also demand information.Financial statements and other information provided by enterprises will become the basis for analysts' analysis and affect their earnings forecast.Based on the company's investment decisions will affect the business performance of the enterprise,affect the earnings management of the management,and then affect the quality of accounting information,so as to analyze the mechanism of the impact on the accuracy of analysts' earnings forecast,and study the impact and path of the enterprise's allocation of financial assets on the accuracy of analysts' earnings forecast.With the rapid development of China's securities market,the reform of the financial market and the continuous innovation of financial products,enterprises' behavior of financial asset allocation has become more and more common.On the one hand,the management wants to realize financing in the capital market,and on the other hand,they want to profit from the high-profit financial industry,which promotes the increasing financialization of enterprises.According to the current literature,compared with developed countries,the degree of financialization of enterprises is not high,and at present,scholars' studies on the economic consequences of enterprise financialization are not unified,which is mainly reflected in the crowding out effect of enterprise entity investment and the capital reservoir effect of easing financing constraints.This paper analyzes the impact of enterprise financialization on the accuracy of analysts' earnings forecast from the perspective of the impact of enterprise financialization on the quality of accounting information.Therefore,in the context of the deepening degree of enterprise financialization,it is necessary to study the impact on analysts' earnings forecast.This paper conducts an empirical study on the data related to enterprises concerned by analysts of Shanghai and Shenzhen A-shares from 2013 to 2018,and studies the influence of financialization of enterprises,shareholding of institutional investors and accuracy of analysts' earnings forecast.It is found that under the current background of financialization of enterprises in China,the higher the degree of financialization of enterprises is,the higher the accuracy of earnings forecast of analysts is.As institutional investors have governance effect on companies,they exert pressure on analysts and play a positive role,which can strengthen the positive impact of corporate financialization on the accuracy of analysts' earnings forecast.In view of the conclusion,this paper puts forward the following countermeasures:The government should improve the capital market,encourage enterprises to allocate reasonably financial assets,and give full play to the positive effect of enterprise financialization.Enterprise management should use the capital market,increase innovation,cultivate core competitiveness,prevent the use of financial asset allocation to pursue short-term interests,which is not good for the long-term development of enterprises;The government and the securities supervision department should encourage the development of institutional investors,improve the governance of institutional investors,and guide the favorable behavior of institutional investors for the development of the capital market.Analysts should improve their professional quality and moral level to play a good role in the information bridge of the securities market.