The Research On The Impact Of Analyst Following On The Pricing Efficiency Of Margin Stock

In recent years,China’s securities market has been constantly developed and improved in the process of step by step,and has made remarkable achievements,as a result of the self perfection of the market mechanism,the securities analyst is more and more concerned by the investors.As a bridge of information communication between listed companies and investors,analysts,on the one hand,play the role of information users,on the other hand,act as the role of information providers,analysts appears to be conducive to investors to better understand the relevant investment enterprises,have helped to improve the quality of information disclosure of listed companies to the market,their behavior can provide effective information to reflect the intrinsic value of the stock market investors,contribute to the faster flow of information,in order to promote the efficiency of capital market,optimize the market allocation of resources.As an important index to measure the efficiency of stock pricing,the synchronicity of stock price directly reflects the efficiency of stock pricing,securities analysts use their expertise and skills to collect industry and market information,mining company level information,can improve the share price of the relevant information absorption,reduce the stock price synchronicity,improve the efficiency of stock pricing.This paper use of the environmental advantages offered by the gradual opening of margin trading in China’s securities market,select the Shanghai and Shenzhen stock markets in two cities in 2010-2015 with the qualification of margin trading as the research sample,adopting the method of combining normative analysis and empirical analysis,this paper studies the effect of the analysts following on the pricing efficiency of margin stock.The mpirical study findings:(1)Compared to the underlying stock without analysts following,there are analysts following the underlying stock price synchronicity lower.This stems from the existence of analysts can tap more corporate level information,investors will also be based on whether or not have the analysts following to determine whether the value of the company’s investment,therefore,analysts have followed the company’s share price synchronicity is lower,the stock pricing efficiency is higher.(2)There is a significant negative correlation between the number of analysts following and margin stock price synchronization,the more analysts following,the lower of the underlying stock pricesynchronization.The reason is that the more analysts following,means that the higher the degree of concern,this help to improve the company’s management to disclose the enthusiasm of the information,in order to reduce the stock price synchronicity.(3)The accuracy of analyst earnings forecast is higher,analyst earnings forecast error is smaller,margin of the underlying stock price synchronization is lower.The reason is that analysts can make use of the information by the company to make a more unbiased earnings forecast,It can increase firm-specific informationthe of the company’s stock price,which can reduce the stock price synchronicity.(4)The higher the analyst’s earnings forecast dispersion,margin of the underlying stock price synchronization is lower.The reason is that the greater the analyst’s dispersion,the greater the difference in the firm’s idiosyncratic information,these different characteristics of the company’s information reflected in the earnings forecast,it can help investors understand the company’s operating situation from a multi angle,make the stock price information content increase,the stock price synchronization reduces.(5)In different market situation,the analyst following behavior has different effects on the stock price synchronicity of the underlying stock.In the normal and stable stage of the stock market,Investors are willing to make reasonable investments based on analyst recommendations,in this market situation,the analyst tracking behavior can effectively reduce the stock price synchronicity of the underlying stock.In the stock market continued to rise and the stock market continued to decline,it is due to the optimism and pessimism of investors,the market and company level information can not be effectively transmitted,although the analyst behavior can reduce the stock price synchronicity to a certain extent,but in general,the analyst effect is not obvious enough.