A Study Of The Relationship Between Accounting Information And Security Analysts

The sound development of the capital market not only demands reliable, relevant, sufficient, clear and prompt accounting information, but also requires a group of professional personages who collect, collate, synthesize, evaluate and analyze the accounting information. Security analysts are exactly the experts who engage in interpreting accounting information. However, the scholars at home and abroad haven't attached importance to the close relationship between accounting information and security analysts, similar study can be rarely found. The paper intends to delve into and bring out the relationship between accounting information and security analysts from all sides, in hope of getting more valuable opinions.We adopt normative approach to study this problem and there are four chapters in the thesis besides the introduction:1. In order to lay the foundation for further discussion, Chapter One mainly focuses on the definition of security analysts, the status quo of its development, and the inevitability of their existence.2. Chapter Two investigates the impact of accounting information on security analysts and discusses that accounting information serves as an essential source of information for security analysts and its quality has a direct influence on the value of security analysts' research paper. This discovery enlightens us that we should improve the information environment so that analysts can concentrate on their own work and play their important part as a best researcher in capital market.3. Chapter Three analyzes the relationship between security analysts and accounting information needs in detail. At first, it explains that enterprises will attach importance to their accounting information users' needs on the basis of three voluntary motives of accounting disclosure. Then, it goes on to offer a discussion on why security analysts can be regarded as the very representative of other accounting information users from four respects: the content of users' information needs, the inherent motive power, users' maturity and their force. What is also included is that the characteristics of security analysts' needs. Compared with investors, security analysts are the main users and their needs will affect the direction of accounting information supply. Enterprises should focus on satisfying their professional users' demands when they disclose information.4. Chapter Four discussed how security analysts affect accounting information supply. It's found that security analysts not only play an important role in transmitting accounting information, they also work as the transmitter of the incremental information on earnings forecast and promote a positive circulation of accounting information.The main contributions of this research are as follows: (1) This dissertation sums up the information regarding security analysts which will be useful for future research; (2 )Not restricted to the statement that " investors are the very representatives of accounting information users ", this dissertation proposes that security analysts are the expert users of accounting information, and this conclusion will help enterprises improve their own skills in disclosing accounting information; (3) This dissertation provides a relatively complete framework for the research on the relationship between accounting information and security analysts and this practice would serve as reference for the further research.