Analysts Focus On The Impact Of Research On The Risk Of A Crash In Share Prices

Securities analysts tend to use its own resources for more company information,which can help investors to improve understanding of the enterprise level,but analysts may,for their own interests to the enterprise to make a more positive evaluation,make better share price can not reflect the market information,so as to cause adverse effect to the market.At present,China’s securities market is still not perfect,analysts concerned about how to affect the change of stock prices and there is no clear answer.Based on the existing literature,this paper will study the direct relationship between analysts’ attention and stock price crash risk,and then explore the role of analysts in the securities market.Based on the stock price data of a-share listed companies from 2009 to 2020,this paper adopts the negative skewness of conditional return and fluctuation rate of return to represent the crash risk of stock price,and the analyst’s concern is expressed by the number of analysts studying the company.The empirical results show that analysts’ attention is positively correlated with the skewness coefficient of future negative returns and the fluctuation ratio of returns,which indicates that the supervision and information intermediary role of analysts is limited,and it does not restrain the risk of stock price crash,but aggravates the risk of stock price crash.In the further study of pressure and please mechanism found that analyst focus is not on the company’s managers to put too much pressure,to institutional investors and analysts to please release behavior makes it towards a positive evaluation,make investors failed to obtain information on the objective truth,lead to share price increase in the risk of collapse.The analyst’s self-interest behavior shows that the stock market has the insidiousness and there is certain interest exchange.Therefore,it is suggested to strengthen the supervision of law,improve the legal system of China’s capital market,and promote the supervision of law.Improve the relevant mechanism of the market,strictly verify the company’s financial data,and reduce the information opacity between enterprises and investors.Strengthen punishment,strictly eliminate the existence of insider behavior in the market,to avoid analysts for their own interests to do damage to the market.