Securities Analyst At Investment Grade Information Content And Influence Factors Empirical Research

Since 2006 China's stock market has developed rapidly into a rising channel, the number of listed companies reached more than 1,400, with a total market value of about 27 trillion. As the backbone of securities companies, brokerage analysts play an important role for the healthy development of the stock market.Brokerage analysts provide investment rating recommendations to small and medium-sized investors or institutional investors as a direct investment reference through their own research on listed companies, what is the information content of these recommendations? What factors affect the information content? These problems are directly related to the interests of investors and brokerage industry. Based on a sample of the latest Wind data, this paper has several empirical studies.This article first introduce the related theory with securities analyst, then use the event method and time serie method to check the information content of investment rationg, after that we use some statistical method ,correlation and regeression analysis,to explore the influence factors of the information content.We find that: brokerage analysts tend to issue optimistic rating report, and before issuing buy rating, the stock has a positive rate of return and an upward trend. Generally speaking, analysts have short-term information content; meanwhile downgraded and buy rating have a "drift effect." Further, we use Vankee to explore lead-lag relationship and find out that comprehensive rating lead CAR in long cycle.The test on the five factors, which are information environment, analysts reputation, brokerage reputation, scale of adjustment, investment bank relationship, shows that: information environment have a significant impact on the short-term window information content; The reputation of analyst can explain buy rating and rating low information content of short-term window as well as the long-term effects of rating lowered; Brokerage house's reputation can only explain the information content of lower rating; adjustment for the three types of ratings data have effect on window and week Window information content , the greater the adjustment, the corresponding positive and negative CAR; the investment bank relationship can explain neither..Finally this paper provides some advice on the brokerage industry development and future research in the field of prospects.